German economy shrank 0.2% in Q4 compared to Q3, worse than expected

Germany's economy shrank by 0.2 per cent in the fourth quarter compared with the previous three-month period, official figures showed Monday

German economy shrank 0.2% in Q4, compares with previous 3-month period
German economy shrank 0.2% in Q4, compares with previous 3-month period. Photo: Bloomberg
AP Berlin
2 min read Last Updated : Jan 30 2023 | 5:09 PM IST

Germany's economy shrank by 0.2 per cent in the fourth quarter compared with the previous three-month period, official figures showed Monday.

The performance by Europe's biggest economy was worse than expected.

Gross domestic product shrank for the first time since the first quarter of 2021 largely because of a decline in consumer spending, which had supported the economy in the first nine months of 2022, the Federal Statistical Office said. The drop followed GDP growth of 0.5 per cent in the third quarter and 0.1 per cent in the second quarter.

The statistics office said in mid-January, before it had full December economic data, that the economy appeared to have stagnated in the fourth quarter. Monday's announcement prompted it to revise last year's full-year growth figure down to 1.8 per cent from the 1.9 per cent it initially reported.

Germany's annual inflation rate rolled back from a peak of 10.4 per cent in October to 8.6 per cent in December, but galloping prices remain a major headache.

A potential energy crunch following Russia's invasion of Ukraine and the end of its gas supplies to Germany also was a concern last year. But Germany's network regulator said earlier this month that a gas shortage was increasingly unlikely this winter.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :German economyglobal economic crisisEconomic policy

First Published: Jan 30 2023 | 5:09 PM IST

Next Story