The German economy contracted more strongly than expected in the final three months of 2022 as inflation and the energy crisis took their toll on household consumption and capital investment. | Reuters
The worse-than-expected final result for the fourth quarter increases fears of a winter recession. A recession is commonly defined as two successive quarters of contraction.
“Today’s numbers show that the sharp rise in energy prices has noticeably slowed down the economy despite the government’s extensive aid measures,” Commerzbank’s economist Ralph Solveen said. With the global tightening of monetary policy, Solveen said a noticeable economic recovery is hardly to be expected.
After relief measures such as the fuel discount and the 9-euro transport ticket ended, consumers spent less in the fourth quarter than in the third quarter, the statistics office said. Household spending was down 1 percent, while government spending rose 0.6 percent compared to the previous quarter. Investment also weighed on economic performance, according to the statistics office. Investment in construction fell 2.9 percent in the fourth quarter, while investment in machinery and equipment declined 3.6 percent, both adjusted for inflation, seasonal and calendar effects.
In the fourth quarter, exports of goods and services fell 1 percent compared to the third quarter. This was due to the difficult international situation, marked by ongoing supply chain disruptions and high energy prices, according to the statistics office.Subscribe to our daily newsletter
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jeric Gonzales, Joaquin Domagoso honored at 2023 Ani ng DangalGet the latest news and exclusive features on your favorite Kapuso programs and celebrities.
Read more »
Taiwan revises down 2023 GDP growth forecast on export slumpTaiwan’s economy is likely to grow more slowly this year than previously forecast, the statistics office said, while also slashing the island’s export outlook due to global inflation, rate rises and impact of the war in Ukraine. | Reuters
Read more »
LOOK: Ashley Montenegro heads to Egypt for Miss Eco International 2023Ashley is aiming for a back-to-back Miss Eco International victory for the Philippines.
Read more »
PRIME Philippines welcomes 2023 with its first in-person real estate event | BMPlusPRIME Philippines kicked off the year by holding its first exclusive in-person event entitled “2023 Philippine Property Market Outlook: REVENGE or RETREAT” last January 31 at Shangri-La the Fort in Bonifacio Global City, Taguig City. Delegates from valued industry stakeholders, key government agency officials, top developers, property owners, and various occupiers within…
Read more »
MR.D.I.Y. gears up for wider CSR program for 2023 | BMPlusThey say charity begins at “home.” MR.D.I.Y., the nation’s favorite family and home improvement one-stop shop retailer, affirmed its commitment to serve and spread goodwill to its communities this year. Know more:
Read more »