new data shows that wasn't the case. the big reason seems to be the failure of private consumption to support the economy and the face of high inflation rates, a mild winter meant of germany avoid, but could have been an even deeper recession. let's discuss this with veronica graham, who is on the german council that i cannot make x best wish advisors. german governments, thanks a lot for joining us. update of the business. so why in the end was in germany able to avoid recession? yeah, the numbers for the 1st quarter of 23 uh, worse than expected. um high prices uh, in particular the weight on the drum and the economy you mind and in particular, consumption consumption declined. and um, overall be a moving away from the supply constraints to what uh, demand constraints, which is of course due to the high prices and also due to the respective monetary policy, which is important to bring inflation down. inflation is still highest. so we are

in a very challenging situation now, where we have a spec nation and at the same time, high inflation. yeah, indeed. how does the government react to this revised figure? does anything change? now that we know that the country was actually in a technical recession in the 1st quarter. yeah. that a lot of discussions, of course the numbers just came out. so it is not yet unclear how is the government in particular really react. i think it's very important to increase the supply supply of energy to bring and place them down. i think also it is important that of a repeating central bank of the managers. soft lending without provoking a 2 strong recession by 2 strict smaller monetary policy. but at the same time, not losing too early, which is of course, um, a challenge in the situation. because if inflation comes back then the situation

won't be even worse. so, can we try and predict how long term is likely to stay in this recession? because previous forecast has suggested that overall this year germany was going to be seeing drivers. but is that still the case? yeah, the latest evaluation of business in this is, for example, the business climate index of the east to institute suggest that the economic mode is not brightening up at any time soon. so the index fails from 91 points in may of 290. 1 points in may from 93 points in april. so i think we will have a period of stagnation and it's very important to accelerate investments to initiate investment incentives for industry and energy generation capacity and

all these things that will contribute to bringing prices down in the broad overall . okay, veronica graham is always interesting to hear what you say on these think caps. thank you so much for all the figuring from the german council of economic expense . thank you. now that news of germany slipping into recession comes on the same day as a new report shows that the country's businesses are getting less innovative. according to germany's bass, with his mind foundation, nearly 40 percent of german companies are choosing not to invest in innovation. that's up from pay this labor a quarter, 3 years now to discuss the best of men's foundations findings for let's to speak to armando garcia, schmidt, hughes from the foundation. thanks a lot for joining us on the to the business. so why it's tim and companies in it? i think so it driven in companies are innovating,

but they all innovating, less and less and fewer companies are innovating. so we did a study uh now and we did it for us. so the 3 years ago in 2019 and we see that the proportion of, of companies that are not actively looking for innovations is constantly growing. so it has grown only this past 3 years from $27.00 to almost 40 percent off of the the, the whole landscape of enterprises. rephrase that then not looking to innovate makes it seem like an active decision on behalf of companies. is it the case of that choosing not to be and if it's, if the whatever business reasons or i think there are different reasons for that. so we, for example, we us the, the, the companies and how they did it. so what they did with their innovation

activities during the corona pandemic. so we think that's always see what i was telling you that the current up and damage is frushell one. um a one uh, driver of this uh thing off of this. um, so we see that uh, 42 percent of the companies that already had been more cautious uh with regard to innovation that they did during the corona pandemic. they postpone, or they completely cancel their innovation activities. so they, the already planned innovation activities. and even now, uh, we see also studies from, from other institutes like the that's the w, which show that these companies don't really come back to the status they had before corona and we think so, corona as a driver for sure. but we think that it's more so small and medium sized

enterprises which happen in earlier times innovative. they are going out of the innovation of run scenes. so there is a couple of reasons for that. so, so it's, it's getting more and more of a so complicated to do to, to, i think the spelling is that gonna really surprise people because it's been taken off for quite a while that you have any needs to innovate more if it's gonna keep up with investors in asia or in the united states to define that the, the trend is going on the other direction. i mean, what does that mean for the to have an economy going forward? so, so we think that it's really danger full for jim and economy and thoughtful the jim society if he, if you want to. so we see also with our study that for example, a highly innovative companies make a more dynamic contribution to the labor market. so

a highly rated companies they, for example, have, even during the pandemic, they had a record at an average increase in employees twice as high as the average for all companies. so, so there's, and that's really dangerous for prosperity and in germany. and we see also with our studies, so we have all developed economies, we have the, the, the big challenge of transition to world sustainability. and we see that also the, the highly, in way to a firms. they are investing more in sustainability and in the search for us. they bill it to your sustainable solutions. on the day that we learned that tony slipped into our set for session, this is a surprising and i suppose troubling news with germany calling me. but i'm under garcia schmidt from best buy. i'm still strong. thank you so much for joining us on the business. so now let's look at some of the other business stories that are

making the news. a percentage of women on supervisory boards is rising in germany. according to a new study, women make up 38 percent of board members of the 40 companies listed in the countries. bluetooth index tax that's almost 2 percentage points more than a year ago. francis available nuclear capacity is set to increase ahead of next winter, 6, offline reactors over to operations sooner than expected. defense government took several rafters offline last year for checks. and the past front is the largest exporter of nuclear power in the, the you until the bodies have successfully re flow to the large container ship that was briefly stranded in the suez canal. an engine malfunction at stump, c 119 meter long carrier from home called 12 percent of the straight across the booth through with the suez canal. shortest shipping rates between your foundation of south african reserve bank has raised interest rates for the 10th time in

a row. the hoff percentage point hike is part of a long battle with inflation is currently sticking around 7 percent. the price rises piling extra pressure on south africans who are stuck in an era of economic challenges. grocery shopping is a simple task, but it's increasingly hard for many in south africa, inflation is running its 6.8 percent, and the price increase for food is much higher. the south african ran, pays for fewer and fewer goods for my own. this is did you somebody else as well as i'm thinking? and now it's cost me as well, like never before. so my thoughts as what it is to be somebody and brand as well, which means like things are not too expensive. in addition to high inflation, constant power outages, plague the country. this makes business difficult for large companies and the many

people who are self employed economy school kids who mano fears that the constant rise of interest rates, is causing people to slip into a debt trap. july end of the spectrum already and appraise you having to deal with rising inflation in comes not rising as much food inflation that can support majority of the pos good. they going to show the patient in the impoverished district of alexandra social entrepreneur miles co becca runs a store selling basic food supplies. those who don't have a lot come here to buy things in small quantities. there are more and more people who fit that description is what we see new ways. um, especially the one ukraine is that things like um, food costs went up drastically. things like cooking boil, which is one of our top salads x, for example. those are the things that people just desperately need on a daily basis to stop by high inflation interest rates that continue to rise

a weak economy. for many people in south africa, there is currently little prospect of a better life. and just to remind of the top business story that we all following for you this, our gemini is in recession advice, vegas for the 1st quarter. so the german economy trying to find not to point 3 percent for the 2nd consecutive negative quote to the weakness is partially due to low consumers spending the face on section. so for me, in the business team here and balance of all that had to do, we dot com slash business. of course the to we can use the,

the lots and lots of children took to fuse the wells population is growing at on the balanced rates in some places the things nation and was hoping to present

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in our series guardians of truth, watch now on youtube dw documentary, the business day. nobody news line from the land, the leader of the voc, the most and the grouping. ukraine says he's having control of the ruined safety of bath most to the regular russian army. you cried, however insists the city hasn't folded also on the program as a by john's lead assessed. that's a real chance the uptake steel with.