The German economy had to contend with many crises last year. But how did the gross domestic product develop at the end of the year? The Federal Statistical Office has now announced this.
Consumers’ reluctance to buy, increased building interest rates and the sluggish global economy will have a negative impact on the German economy in 2023. The Federal Statistical Office is today using preliminary data to announce how the gross domestic product (GDP) developed at the end of the year.
According to an initial estimate by the authority, economic output shrank by 0.3 percent in the fourth quarter of 2023 compared to the previous quarter, adjusted for price, calendar and seasonally.
Last year, Europe’s largest economy slipped into recession, according to preliminary data from statisticians. Economic output fell by 0.3 percent for the year as a whole compared to the previous year.
Consumers held back
Private consumption failed to provide an important economic support. Consumers held back on purchases due to sometimes high inflation rates. At the same time, Germany’s exporters felt the weakness of world trade, and rising real estate interest rates slowed construction.
Economists are expecting another difficult year in 2024 and a weak start to the year. “All in all, German economic performance could at best stagnate in the first quarter of 2024,” writes the Bundesbank in its January monthly report. This would delay the expected recovery. Some economists do not rule out a further decline in gross domestic product in 2024 as a whole.