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 1.0%, while government spending rose 0.6% compared to the previous quarter.
Investment also weighed on economic performance, according to the statistics office. Investment in construction fell 2.9% in the fourth quarter, while investment in machinery and equipment declined 3.6%, both adjusted for inflation, seasonal and calendar effects.
In the fourth quarter, exports of goods and services fell 1.0% 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. (Reporting by Maria Martinez, Editing by Kirsti Knolle, Friederike Heine, Rachel More and Tomasz Janowski)
