Germany: Second reading confirms that GDP fell in Q4
A second reading confirmed that GDP contracted 0.3% on a seasonally adjusted quarter-on-quarter basis in Q4 (Q3: 0.0% s.a. qoq). Q4’s reading marked the worst reading since Q4 2022. On an annual basis, GDP contracted 0.4% in Q4, up from the previous period’s 0.7% fall.
The decline was largely due to a fall in net trade. Exports of goods and services fell 1.6% on a seasonally adjusted quarterly basis in the fourth quarter, which was below the third quarter’s 0.8% contraction. Meanwhile, imports of goods and services fell at a sharper pace of 1.7% in Q4 (Q3: -1.5% s.a. qoq), marking the worst reading since Q1 2023. In addition, public spending growth moderated to 0.3% in Q4 (Q3: +1.1% s.a. qoq). Finally, fixed investment contracted 1.9% in Q4, marking the worst reading since Q3 2021 (Q3: +0.1% s.a. qoq).
That said, more positively, private consumption rose 0.2% seasonally-adjusted quarter-on-quarter in the fourth quarter, which marked the best reading since Q3 2022 (Q3: 0.0% s.a. qoq).