Germany contracted by 0.3% in the final quarter of 2023 after two consecutive periods of stagnation, as Europe's largest economy grappled with the impact of rising prices, increased borrowing costs and weak external demand, particularly affecting the manufacturing and construction sectors. Notably, gross fixed capital formation plummeted by 1.9% (vs 0.1% in Q3), primarily due to decreases in investments in construction (-1.7% vs -0.8%) and machinery and equipment (-3.5% vs 1.4%). In addition, inventory changes subtracted 0.1 percentage points from growth. Meanwhile, private consumption rose by 0.2% (vs 0.0% in Q3), and public spending increased by 0.3% (vs 1.1% in Q3). The contribution from net trade remained neutral as both exports and imports declined by 1.6% and 1.7%, respectively. On a year-on-year basis, the economy contracted by 0.2% in the fourth quarter, entering a technical recession for the first time since 2020-21. source: Federal Statistical Office

The Gross Domestic Product (GDP) in Germany contracted 0.30 percent in the fourth quarter of 2023 over the previous quarter. GDP Growth Rate in Germany averaged 0.47 percent from 1970 until 2023, reaching an all time high of 8.90 percent in the third quarter of 2020 and a record low of -9.20 percent in the second quarter of 2020. This page provides the latest reported value for - Germany GDP Growth Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Germany GDP Growth Rate - data, historical chart, forecasts and calendar of releases - was last updated on April of 2024.

The Gross Domestic Product (GDP) in Germany contracted 0.30 percent in the fourth quarter of 2023 over the previous quarter. GDP Growth Rate in Germany is expected to be 0.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Germany GDP Growth Rate is projected to trend around 0.40 percent in 2025 and 0.30 percent in 2026, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2024-01-30 09:00 AM QoQ Flash Q4 -0.3% 0.0% -0.3% -0.3%
2024-02-23 07:00 AM QoQ Final Q4 -0.3% 0.0% -0.3% -0.3%
2024-04-30 08:00 AM QoQ Flash Q1 -0.3% 0% 0.1%


Related Last Previous Unit Reference
Full Year GDP Growth -0.30 1.80 percent Dec 2023
GDP Growth Rate YoY -0.20 -0.30 percent Dec 2023
GDP Constant Prices 814.67 817.01 EUR Billion Dec 2023
GDP from Agriculture 6.41 7.85 EUR Billion Dec 2023
GDP from Construction 66.58 60.24 EUR Billion Dec 2023
GDP from Manufacturing 197.59 192.01 EUR Billion Dec 2023
GDP from Public Administration 184.74 173.95 EUR Billion Dec 2023
GDP from Services 158.80 156.70 EUR Billion Dec 2023
GDP Growth Rate -0.30 0.00 percent Dec 2023
Gross Fixed Capital Formation 162.14 165.26 EUR Billion Dec 2023
Gross National Product 1089.79 1071.91 EUR Billion Dec 2023

Germany GDP Growth Rate
Germany is the fifth largest economy in the world and the largest within the Euro Area. Germany is the second largest exporter in the world and exports account for more than one-third of national output. As such, the export of high added value products has been the main driver of growth in recent years. Composition of the GDP on the expenditure side: household consumption (55 percent), gross capital formation (20 percent, of which 10 percent in construction, 6 percent in machinery and equipment and 4 percent in other products) and government expenditure (19 percent). Exports of goods and services account for 46 percent of GDP while imports for 39 percent, adding 7 percent to total GDP.
Actual Previous Highest Lowest Dates Unit Frequency
-0.30 0.00 8.90 -9.20 1970 - 2023 percent Quarterly
SA

News Stream
Germany's Economy Contracts at the End of 2023
Germany contracted by 0.3% in the final quarter of 2023 after two consecutive periods of stagnation, as Europe's largest economy grappled with the impact of rising prices, increased borrowing costs and weak external demand, particularly affecting the manufacturing and construction sectors. Notably, gross fixed capital formation plummeted by 1.9% (vs 0.1% in Q3), primarily due to decreases in investments in construction (-1.7% vs -0.8%) and machinery and equipment (-3.5% vs 1.4%). In addition, inventory changes subtracted 0.1 percentage points from growth. Meanwhile, private consumption rose by 0.2% (vs 0.0% in Q3), and public spending increased by 0.3% (vs 1.1% in Q3). The contribution from net trade remained neutral as both exports and imports declined by 1.6% and 1.7%, respectively. On a year-on-year basis, the economy contracted by 0.2% in the fourth quarter, entering a technical recession for the first time since 2020-21.
2024-02-23
German Economy Shrinks 0.3% in Q4
The German economy contracted by 0.3% in the final quarter of 2023, aligning with market expectations and marking a downturn after two consecutive periods of stagnation, a preliminary estimate showed. Europe's largest economy faced mounting challenges, grappling with the impact of rising prices and increased borrowing costs, particularly affecting the manufacturing sector. Gross fixed capital formation witnessed a significant decline, primarily due to decreases in investments in construction and machinery and equipment. On a year-on-year basis, the economy contracted by 0.2% in the fourth quarter, entering a technical recession for the first time since 2020-21.
2024-01-30
German Economy Contracts 0.1% in Q3
The German economy contracted marginally by 0.1% in the third quarter of 2023, reversing the 0.1% growth seen in the previous three months. Private consumer spending declined by 0.3% (vs 0.2% in Q2), attributed to the impact of escalating interest rates and sustained high levels of inflation. In contrast, fixed investment grew by 0.6% (vs -0.3% in Q2), thanks to rising investment in both equipment (1.1% vs 0.7%) and construction (0.4 vs -0.9%). Public spending also increased by 0.2%, ending a four-quarter period of contraction. Finally, external demand added 0.2 percentage points to the GDP as imports declined more than exports, while inventory changes subtracted 0.4 percentage points. On an annual basis, GDP declined by 0.4% after growing by 0.1% in the previous period.
2023-11-24