BERLIN, Reuters The German economy was in recession in early 2023 after households 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 forecast a recession in 2023 only in Germany and Britain among European countries.

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

Household consumption was down 1.2 quarteronquarter after price, seasonal and calendar adjustments. Government spending also decreased significantly by 4.9 on the quarter.

The warm winter weather, a rebound in industrial activity, helped by the Chinese reopening, and an easing of supply chain frictions, were not enough to get the…