Final data published by the Federal Statistical Office (Destatis) showed that in the fourth quarter, GDP fell by 0.3%, confirming the preliminary estimate and forecasts of economists. In the third quarter, GDP remained unchanged. For the whole year of 2023, the most recent calculations have confirmed the year-on-year decline in economic performance of 0.3% (calendar adjusted: -0.1%).
"The German economy ended 2023 in negative territory. In the final quarter, declining investment had a dampening effect on economic activity, while consumption increased slightly," says Ruth Brand, President of the Federal Statistical Office.
Household final consumption expenditure increased by 0.2% QoQ, while government final consumption expenditure rose by 0.3% QoQ. Fixed capital formation in construction fell 1.7% QoQ. This comes on the heels of the declines already registered in the two previous quarters. The decline in gross fixed capital formation in machinery and equipment at the end of the year was even more pronounced, at -3.5% QoQ. Total exports of goods and services fell by 1.6% QoQ, while imports declined by 1.7% QoQ.
The data also showed that in annual terms, GDP fell by 0.2%, in line with the preliminary estimate and forecasts of economists. In the third quarter, the economy contracted by 0.3%.
The economies of the other large Member States of the European Union (EU) and of the EU as a whole also slowed in the 4th quarter of 2023. Spain and Italy still recorded slight increases of 0.6% and 0.2%, respectively, from the 3rd quarter of 2023, while price, seasonally and calendar adjusted GDP stagnated in France and also in the Euro area as a whole (0.0%). At -0.2%, the year-on-year development of economic performance in Germany is clearly below that of the EU as a whole (+0.3%), after adjustment for price, seasonal and calendar variations.