German economy shrank more than expected in the last Three months of The year is 2022, amid an energy crisis and persistent inflation, which raises fears that the country may be headed for recession.
German economy shrinkage of 0.4% in the fourth quarter of 2022 comparison with The past three months, statistics office He said Friday.
raw data from office indicated 0.2% quarter-over-quarter contraction adjusted for price and calendar effects. in the third group quarter of In 2022, the Gross Domestic Product (GDP) saw a slight increase growth of 0.5% compared to the previous three months.
the second Consecutive drop in ifo current Valuation component, falling manufacturing PMI, weak consumer confidence and appetite spend Near historical lows, they all point to deflation of German economy Once again in the first quarterING’s global head of said macros Carsten Brzeski.
worse than expected final result for the fourth quarter Fear increases of winter stagnation. A recession is generally defined as two consecutive quarters of contraction.
Today’s numbers show That’s sharp rise in Energy prices have slowed significantly down the economy Despite the government’s extensive aid measures, ” global tighten of monetary policyA remarkable economist, Solveen said recovery He is hard the expected.
After relief measures such as a fuel rebate and €9 ($9.49) for transportation ticket Finished, consumers spent less in the fourth quarter from in the third quarterstatistics office He said. It was family spending down 1% while government Spending was up 0.6% year-on-year quarter.
investment also weighing on Economic performance, according to statistics office. investment in Construction fell 2.9% in the fourth quarterwhile investing in machines and equipment declined 3.6% both adjusted for Inflation, seasonal and calendar effects.
in the fourth quarterexports of Goods and services decreased by 1% compared to the third quarter. This was due to the difficulty international Which has been marked by persistent supply chain disruptions and soaring energy prices, according to the statistics office.
Russia invasion of Ukraine triggered sharp rise in Energy prices in Europe, as Moscow has cut back on important gas supplies to the continent.
negative review for growth The numbers showed that “recession is in Carsten Brzeski said, head of macro in ING bank.
German economy I showed “more more flexible than feared,” with the help of government support and Clement Winter weather that took sting out of Energy crisis, Brzeski said.
But there was no “no.” guarantee for Powerful recovery anytime soon”,” with signs point to another quarter of negative growth in the first quarter of 2023 hence the recession, he said.
Administrators in Berlin currently Economic forecast growth of 0.2% in 2023, after previously signing A.J drop.
