BERLIN (dpa-AFX) - The German economy likely entered a recession in the first quarter, Bundesbank said in its monthly report on Monday.
After a 0.3 percent economic contraction in the fourth quarter, real gross domestic product could decline slightly again in the first quarter, the bank observed.
The weak phase in the German economy that started since the war in Ukraine would continue, the bank said. However, a broad-based and long-lasting decline in economic output is not currently expected, Bundesbank added.
Further, the bank noted that the long-lasting economic weakness so far had only a mild impact on the labor market. There are no signs of an impending noticeable deterioration in the labor market due to the weak economy, the central bank said.
Experts expect inflation to continue to ease in the coming months. Price pressures on food and other goods will probably continue to fall in the coming few months, but it is likely to fall more slowly in services.
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