The economy grew in the first quarters of 2022, but shrank slightly in the fourth quarter.
(Photo: IMAGO/blickwinkel)
Berlin At the end of 2022, the German economy shrank more than initially assumed. The gross domestic product (GDP) fell from October to December by 0.4 percent compared to the previous quarter, as the Federal Statistical Office announced on Friday.
In a first estimate from the end of January, the authority had only reported a shrinking of economic power by 0.2 percent. “The momentum of the German economy weakened significantly towards the end of the year.” The main reason was that private consumer spending fell by 1.0 percent compared to the previous quarter due to high inflation.
If GDP also shrinks in the current quarter – and thus for two quarters in a row – Germany would be in a technical recession according to a rule of thumb. For the year 2023 as a whole, however, most experts are no longer as gloomy as they were in autumn, despite the Ukraine war and ongoing supply bottlenecks.