German Economy Contracted More Than Expected at End of 2022
- Output decreased 0.4% in 4Q, revised down from -0.2%
- GDP to decline again in 1Q, resulting in a German recession
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German output shrank more than expected at the end of 2022 as Europe’s economy struggles with the fallout from the energy crisis and the war in Ukraine.
Gross domestic product contracted 0.4% in the fourth quarter, double the previously reported drop. The statistics office said that declines in capital investment and private consumption were primarily to blame, while government spending had a positive effect.