German GDP contracted 0.4% in Q4

The German economy contracted at the end of last year as inflation and the energy crisis affected household consumption and capital investment.

The Federal Statistics Office said on Friday that the country’s economy contracted 0.4 percent in the last quarter of 2022 compared to the previous three months.

Preliminary data from the bureau indicated a contraction of 0.2 percent on a quarterly basis, which was adjusted for price and calendar effects. In the third quarter of 2022, the GDP witnessed a slight growth of 0.5 percent compared to the previous three months.

After relief measures such as discounts on fuel, consumer spending declined in the fourth quarter compared to the third quarter, the statistics office said. Household spending fell 1 percent.