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about sugars paralyze between your systems. computers and governments that go crazy for your data. we explain how things, technologies work, so that's how they can also watch it. now. the roof economic winter lines, germany and recession revised tickets for the 1st quarter. so gm and g d p shrank cast the most i full, i think at the end of last year, we'll ask how long the recession could last. a more economic problems for south africans to is the country's central banks. a heights interest rates pulled up 10

times in a row state of the business summer box invalid. and welcome to the program. germany is in recession revised figures for the 1st quarter show that you have an economy shrank by no point 3 percent about follows. another quote uh for the ddc at the end of last year meeting the criteria for a technical recession. the original figure out the key one suggested the german economy stagnation, 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 meant that germany avoided, but could have been an even day for recession. for let's discuss this with veronica graham, who is on the german council that i cannot make x best, which advises german government. thanks a lot for joining us. some date of your 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 in particular, the weight on the drum and the economy you mind and in particular, consultants, uh, consumption declined. and um, overall we are moving away from 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. so yeah, there are a lot of 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 and place them down. i think also it is important that of a repeating central bank of the managers. soft lending a 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, um, a challenge in this 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 the 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. the index of the east to institute suggest that the comic 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 periods of stick nation and it's very important to accelerate investments to initiate investment incentives of for industry in energy generation capacity and all these things that will contribute to bringing prices down in the bro. all ok, veronica graham is always interesting to hear what you say on these things. let's thank you so much for all your dream from the gym and 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 battle this month, the foundation nearly 40 percent of german companies are choosing not to invest in

innovation. that's up from a little over a quote to 3 years now to discuss the vessels, benz foundations, findings for let's to speak to armando garcia schmidt here's from the foundation. thanks a lot for joining us on the to the business. so why it's tim and companies in of 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 the 1st of 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 the choosing? not to be, and if it's, if the whatever business reasons. 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 seat with our study that the korean up and that make is frushell one and a one driver of this thing off of this. so we see that a 42 percent of the companies that already had been more cautious the 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 e w, which show that these companies don't really come back to the status they have before a 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 happened in earlier times innovative. they are going out of the, of the innovation a run since. so there is a couple of reasons for that. so, so it's, it's getting more and more. uh, so complicated to do to, to i think these findings are going to 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, that, that is really a danger for, for german economy and thoughtful the chip society if you, if you want to. so we see also with our study that, for example, highly innovative companies make a more dynamic contribution to the labor market. so a highly rated companies they, for example, have even during debbie they had a record is an average increase in employees twice as high as the average for all company. 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 big challenge of transition to about 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 german economy. but i'm under garcia schmidt from that as mine, stiff dung. thank you so much for joining us on the date of 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 from says available nuclear capacity is set to increase ahead of next winter. 6. offline reactors will return to operation sooner than expected. defense government took several rafters offline last year. checks and repass fronts is the

largest exporter of nuclear power, 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 meet along carry a from hong kong. 12 percent of the us try to push this 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 still good. 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 choice is what it is to be somebody and brand as well, which means like things that are 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. yeah. having to deal with rising inflation in comes not rising as much food inflation that come to port majority of that pos. good. they going to show the patient in the impoverished district of alexandra social entrepreneur miles could 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. what we've seen, we ways um, especially the one ukraine, is that things like the food costs went up drastically. things that cooking oil, which is one of our top salads eggs, for example. those are the things that people just desperately need on a daily basis to survive. 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. it's just a reminder, 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 shrank by not point 3 percent for the 2nd consecutive negative quote to the weakness is partially due to low consumers spending face on infection. so for me, in the business,

the inherent valid, i'm all of that had to do, we dot com slash business. of course the, the, the, we can use which account the enters the conflicts with sarah kelly. my guess this week on the conflicts own was one of the most prominent members of freshman's wealth connected power over former kremlin advisor and economist fair gate, gloria now is the professor of economics and provost that fee on scope is work, illuminates how of, for terry, emerging in flight school, survive. how does he assess, put his grip on power conflict? on to the point, strong opinion, clear positions, international perspective. you can assess to receive more. i'm a nation from need to members in yet another effort to counter the russian and wage and after going back banks, now ukraine will receive 5 digits on to the point we off f. 16. so you claim why do

them up to the point in 60 minutes? on the w. what secrets? why behind being discovered new adventures and 360 degrees and explore fascinating world heritage sites dw world heritage 360 now the my guess is suites on conflicts own was one of the most prominent members of russia's well connected power, elite, former kremlin advisor, and economist sergey gloria was head of a top economic university and was being re elected to the supervisory board of square box rushes, largest lender when he suddenly fled to france 10 years ago saying he fear for his safe.