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Germany's economy shrank, and it's facing a spending crisis that's spreading more gloom
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FILE - German Chancellor Olaf Scholz, left, and German Finance Minister Christian Lindner arrive for the debate about the budget 2023 at the parliament Bundestag in Berlin, Germany, on Nov. 22, 2022. Germany's economy shrank in recent months and business confidence is still in the dumps, according to figures released Friday, Nov. 24, 2023 while the government is struggling to overcome a budget crisis that threatens to exacerbate problems in what was already the world’s worst-performing major developed economy. - photo by AP Photo/Markus Schreiber, File
FRANKFURT, Germany (AP) — Germany's economy shrank in recent months and business confidence is still in the dumps, according to figures released Friday, while the government is struggling to overcome a budget crisis that threatens to exacerbate problems in what was already the world’s worst-performing major developed economy. Europe's largest economy shrank 0.1% in the July-to-September quarter as inflation eroded people's willingness to spend, Germany's statistics office confirmed Friday. Meanwhile, the closely watched Ifo institute survey of business optimism showed a tiny uptick to 87.3 for November from 86.9 in October but remained well below its July level.