Germany’s economy contracted 0.3% in the fourth quarter of last year, compared to July-September, meeting the market consensus, according to preliminary estimates released on Tuesday. The German economy had escaped recession with upwardly revised data showing the country posting 0% gross domestic product growth in the third quarter of 2023.
The contraction in October was led by a marked decline in gross fixed capital formation in construction and in machinery and equipment, according to the country’s statistical authority Destatis. On an annual basis, Europe’s largest economy shrank 0.2% in the final quarter of 2023, above economists’ estimates of a 0.1% decline.—AA
