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German GDP contracted by 0.4% in the fourth quarter
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BERLIN (Reuters) -The German economy contracted at the end of the year, as inflation and the energy crisis took their toll on household consumption and capital
BERLIN (Reuters) -The German economy contracted at the end of the year, as inflation and the energy crisis took their toll on household consumption and capital investment.
The German economy shrank by 0.4% in the fourth quarter of 2022 compared with the previous three months, the statistics office said on Friday.
Preliminary data from the office had pointed to a 0.2% quarter-on-quarter contraction adjusted for price and calendar effects. In the third quarter of 2022, GDP saw slight growth of 0.5% compared to the three months prior.
After relief measures such as the fuel discount and the 9-euro transport ticket ended, consumers spent less on consumption in the fourth quarter than in the third quarter, the statistics office said. Household spending was down 1.0%.
The statistics office publishes a detailed report outlining the data.
(Reporting by Maria Martinez, Editing by Kirsti Knolle and Friederike Heine)
Gross Domestic Product (GDP) measures the total economic output of a country, representing the value of all goods and services produced over a specific time period.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured annually.
Household consumption refers to the total value of all goods and services consumed by households, an important component of GDP.
Capital investment involves funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.
Economic growth is an increase in the production of goods and services in an economy over a period, typically measured by GDP.
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