Berlin, Feb. 24 (BNA): The German economy contracted more strongly than expected in the last three months of 2022, as inflation and the energy crisis affected household consumption and capital investment.
Germany’s economy contracted by 0.4% in the fourth quarter of 2022 compared to the previous three months, the German Statistical Office said Friday.
Preliminary data from the office indicated a contraction of 0.2% on a quarterly basis that was adjusted for price and calendar effects.
In the third quarter of 2022, the GDP witnessed a slight growth of 0.5% compared to the previous three months.
A second consecutive drop in the Ifo current valuation component, falling manufacturing PMI, weaker consumer confidence and willingness to spend near historic lows all point to the German economy contracting again in the first quarter, ING’s global head of macro division Carsten Brzeski said.
A worse-than-expected final quarter result added to fears of a winter recession. A recession is generally defined as two consecutive quarters of contraction.
insignificant