The German economy stagnated in the second quarter as compared to first quarter readings, the Federal Statistical Office (Destatis) said on Thursday.
The Gross Domestic Product (GDP) stagnated at zero growth in the second quarter of 2023, between April and June, first estimate data showed.
Germany's economy, Europe's largest, contracted by 0.1% in the first quarter of 2023 and by 0.4% in the last quarter of 2022, according to revised figures from Destatis.
The second quarter figure was worse than predicted, as analysts expected a 0.3% rebound.
Germany's economy under pressure
Germany entered a technical, or short-term, recession in the first quarter of 2023, after the country recorded a 0.5% contraction in the last quarter of 2022, preliminary data earlier in the year showed.
A recession is commonly defined as two successive quarters of contraction.
Germany's economy has been under pressure in the wake of Russia's full-scale invasion of Ukraine and the subsequent rise in energy prices.
Data from the previous quarter showed that consumers' spending was a lot less as high energy prices weighed on people's minds.
Signs of a weak second half of 2023
Germany "seems to be stuck in the twilight zone between stagnation and recession," Carsten Brzeski, the global head of macro at ING Germany, told the AFP news agency.
"For the third quarter, the overall signs are pointing to contraction again," Jens-Oliver Niklasch, an economist at Landesbank Baden-Wuerttemberg, was quoted as saying by the agency.
"In all probability, a negative result for GDP growth will be recorded for 2023 as a whole," he added.
Inflation hits economy as ECB hikes interest rate
In addition, Germany recorded a year-on-year inflation rate of 6.4% for June, marking the first time the rate increased since February.
That means basic goods cost on average 6.4% more in June 2023 than they did in June 2022.
The European Central Bank (ECB) announced on Thursday for the ninth consecutive time a hike in the key interest rate in the eurozone by a quarter percentage point in a bid to bring down inflation, DW reports.
