Germany's GDP fell by 0.3% in Q4 2021 over Q3: Destatis

GDP was down by 1.1 per cent in Q4 2021 compared with Q4 2019.

After economic performance had increased again last summer despite growing delivery bottlenecks and material shortages, the recovery of the German economy came to a halt at the end of the year due to the fourth COVID-19 wave and another reinforcement of pandemic preventive measures.

After two quarters with considerable increases, household final consumption expenditure was down by 1.8 per cent in Q4 2021 compared with Q3. The government’s final consumption expenditure, in contrast, increased by 1 per cent and had a stabilising effect, Destatis said in a release.

Gross fixed capital formation in machinery and equipment was up by 0.9 per cent in Q4 2021 over the Q3 figure. Gross fixed capital formation in construction remained roughly at the previous quarter's level.

Foreign trade increased in Q4 2021. Exports of goods and services were up by 4.8 per cent compared with Q3. Total imports rose slightly more (5.1 per cent) as the imports of services were up on the previous quarter once again.

The gross value added (GVA) in Q4 2021 decreased by 0.9 per cent over Q3 2021. Diverging trends were recorded for the individual economic sectors. Economic performance improved in manufacturing (1.9 per cent) and construction (1.6 per cent), whereas the recovery that had started in many service branches during the summer was stopped by the fourth COVID-19 wave.

ALCHEMPro News Desk (DS)