According to the report from the Federal Statistical Office (Destatis), in the 4th quarter, German GDP fell by 0.7% after an increase by 1.7% in the 3rd quarter. Economists had expected a decline by only 0.3%. The economic recovery was halted by the fourth wave of coronavirus and the resumption of restrictive measures at the end of the year. In particular, private consumption and investment in construction decreased compared to the previous quarter, while government spending increased. Meanwhile, for the whole of 2021, GDP grew by 2.8%, which was slightly higher than the initial estimate (+2.7%).
Destatis also reported that annual GDP increased by 1.4% after an increase by 2.5% in the 3rd quarter. Economists had expected an increase by 1.8%. Compared to the fourth quarter of 2019, before the outbreak of the pandemic, GDP in the fourth quarter of 2021 was still 1.5% lower.