FRANKFURT, Germany — The German economy contracted in the final quarter of last year, according to data released Friday by the country’s statistics office in its second downward revision of growth estimates.
“The third estimate of German GDP growth in the final quarter of 2022 shows that celebrating resilience was a bit premature. A technical recession is in the making,” said ING economist Carsten Brzeski after the release of the data.
The first quarter-on-quarter GDP estimate had pointed to stagnation, while the second one had seen a contraction of 0.2 percent. The initial reading had commentators cheering the resilience of Germany’s economy and raised hopes the country could escape a recession.
Analysts do not expect a strong rebound this year.
“All in all, today’s figures show that the sharp rise in energy prices has noticeably slowed down the economy, despite the government’s extensive aid measures,” said Commerzbank economist Ralph Solveen. “In view of the fall in energy prices in recent weeks, the pressure from this side should gradually ease. However, the rate hikes by the ECB and many other central banks are likely to have an increasing impact.”
