Germany’s economy shrank 0.3% QoQ in the fourth quarter of 2023, preliminary data by the Federal Statistical Office showed on Tuesday. It followed two consecutive quarters of stagnation.
The latest figure came in line with market consensus.
The EU’s largest economy grappled with the impact of surging prices and elevated interest rates, which particularly affected the German manufacturing industry.
Gross fixed capital formation registered a considerable decline, mostly because of lower investments in construction and machinery and equipment.
In annual terms, the German economy shrank 0.2% during the fourth quarter, while entering a technical recession for the first time since early 2021.
Meanwhile, a separate report showed earlier on Tuesday that the French economy had registered zero growth quarter-on-quarter in Q4, as a positive contribution from net trade offset the effects of lower domestic demand and inventory changes.
In annual terms, France’s GDP grew 0.7% in Q4, according to preliminary data, following a 0.6% growth in the third quarter.
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