BERLIN, May 25 Reuters The German economy was in recession in early 2023 after household spending in Europe39;s economic engine finally succumbed to the pressure of high inflation.

Gross domestic product fell by 0.3 in the first quarter of the year when adjusted for price and calendar effects, a second estimate from the statistics office showed on Thursday. This follows a decline of 0.5 in the fourth quarter of 2022. A recession is commonly defined as two successive quarters of contraction.

German GDP data showed surprisingly negative signals, Finance Minister Christian Lindner said on Thursday. He added that comparing Germany with other highly developed economies, the economy was losing potential for growth.

I don39;t want Germany to play in a league in which we have to relegate ourselves to the last positions, he said, referring to the forecasts of the International Monetary Fund, which predicted a recession in 2023 only in Germany and Britain among European countries.

Robert Habeck, Germany39;s economy minister, said his nation39;s previous high dependency on Russia for energy supply led to the recession but the growth forecasts were much bleaker.

We39;re fighting our way out of this crisis, Habeck said at an event in Berlin on Thursday.

Under the weight of immense inflation, the German consumer has fallen to his knees, dragging the entire economy down with him, said Andreas Scheuerle, an analyst at DekaBank.

Household consumption was down 1.2 quarter on…