as africans, too, as the country central banks, hikes interest rates pulled up 10 times in a row. this is the to the business. i'm a box in bell and welcome to the program. gemini is in recession revised figures for the 1st quarter show that you have an economy, shrank by no point 3 percent fathers, another quote uh for the ddc at the end of last year meeting the criteria for a technical recession. the original figure out for key wants just of the german economy, stagnated, but 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 mentor to him, he avoided, but could have been an even day for recession. but let's discuss this with the rock of graham who is on the german councils, economic exposition, vices, german governments, thanks a lot for joining us on the data of the business. so why in the end wasn't jamming able to avoid recession?

yeah, the numbers for the 1st quarter of 23 uh, worse than expected. um high prices in particular, the weight on the drum and the economy you mind and in particular, consultants, uh, consumption declined. and um, of all the moving away from the supply constraints to what do you mind constraints which is of course, due to the high prices and also due to the restrictive 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, the discussions, of course, the numbers just came out. so it is not yet unclear how is the government in

particular we react. i think it's very important to increase supply supply of energy to bring inflation bone. 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 moment monetary policy. but at the same time, not losing too early, which is of course, i'm a challenge in this situation because if inflation comes back then the situation won't be even worse. so, can we try to predict how long germany is likely to stay in this recession? because the previous forecast is 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 mood

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 stick nation and it's very important to accelerate investments to initiate investment incentives of for industry and energy and generation capacity and all these things that will contribute to bringing prices down in the broad overall. okay, veronica graham, it's always interesting to hear what you're selling these things that's. thank you so much for all your dream from the general council of economic expense. thank you . now that use 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 hey, 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 10 companies in it? i think so, um it driven in companies are innovating, but they all the 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 and 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 the 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 of the, of the companies and how they did it. so what they did with their innovation activities during the corona pandemic. so we think that always see with house study that the career enough and then make 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 canceled their innovation activities. so the, the already plan innovation activities. and even now, uh, we see also studies from, from other institutes like the e 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, 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 executive really surprised people because it's been taken off

for quite a while that you have any needs to innovate more if it's going to 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, that, that is really a danger for, for german 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 for the you have any calling me, but i'm under garcia schmidt from best buy. i'm still strong. thank you so much for joining us on think of any 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 will return to operation sooner than expected. french government took several rafters offline last year for checks and repassed front is the largest

exporter of nuclear power in the, the u. 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 $119.00 me to long carry a from home called 12 percent of the was trying to push this through with the suez canal, the 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 points 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 seeking and now it's costing, as well as 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 the rising inflation. incomes not rising as much for the information i can support majority of the pos good. they going to feel the patient in the impoverished district of alexandra social entrepreneur miles. rebecca 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 wake up drastically. things like cooking boil, which is one of our top sellers explore example. so 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 that you have an economy strength by not to point 3 percent for the 2nd consecutive negative quote to the weakness is partially due to low consumers spending the face on inspection. so for me, in the business team here in berlin,

i'm on to head to dot com slash business. of course the to we can use the,

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only green washing. after all, there are billions to be made. our 2 parts document tree deep sea read starts due date on dw, the business dw news line from barnett and delete of the box the most regrouping ukraine says he's adding control of the ruins, since you have passed much to the regular russian army, you cry and however, incense the city hasn't folded also on the program as a by john status as a real chance of a peace deal with me.