Germany's GDP falls 0.4% in 4th quarter of 2022

By Tuba Sahin

ANKARA (AA) – German economy contracted by 0.4% in the fourth quarter of 2022 compared to the previous quarter, according to a second reading released on Friday.

The figure was worse than the flash estimate of a 0.2% quarter-on-quarter decline, the Federal Statistical Office (Destatis) data showed.

Elevated levels of inflation and the ongoing energy crisis had a negative effect on the German economy towards the end of the year, especially cutting household final consumption expenditure, Destatis noted.

The GDP grew in the first three quarters of last year (up 0.8%, up 0.1% and up 0.5%) despite the economic challenges such as the continuing COVID-19 crisis and the Russia-Ukraine war, it said.

On an annual basis, the Europe's largest economy grew 0.3% in the fourth quarter thanks to stronger domestic demand compared to a year earlier.

In 2022, Germany's calendar adjusted GDP increased 1.9% year-on-year.