German GDP contracts in Q4 amid rising Covid cases
The German economy contracted in the final quarter of 2021 due to rising Covid-19 cases and related restrictions, according to the German Federal Statistical Office.
Gross domestic product slipped an adjusted 0.3% quarter-on-quarter, a smaller drop than the 0.7% seen at the time of the first estimate and economists' expectations.
On an annualised basis, GDP expanded 1.8% year-on-year in the fourth quarter, more than the 1.4% forecast by economists, but the quarterly GDP was still down 1.1% when compared with the pre-Covid fourth quarter of 2019.
Restrictions imposed by the German government during the fourth Covid-19 wave slammed the brakes on household final consumption expenditure and after two quarters with marked increases, saw household consumption fall 1.8% on the quarter after adjustments for prices, as well as seasonal and calendar variations.
Government final consumption expenditure increased by 1.0%, while gross fixed capital formation in machinery and equipment was up 0.9% quarter-on-quarter, exports of goods and services were up 4.8% compared with the third quarter of 2021 and total imports rose a slightly higher 5.1%.