German on edge of recession as GDP contracts in Q4

(Sharecast News) - Germany's economy contracted in the final quarter of 2023 last year, official date revealed on Tuesday, meaning Europe's largest economy is close to recession. German GDP shrank by 0.3% in the final three months of the year 2023, in line with forecasts, statistics agency Destatis said, following flat GDP in the second and third quarters of last year. The third-quarter was revised up from a 0.1% fall.

"Despite recent price declines, prices remained high at all stages in the economic process and put a damper on economic growth,2 said Destatis President Ruth Brand.

"Unfavourable financing conditions due to rising interest rates and weaker domestic and foreign demand also took their toll. Therefore, the German economy did not continue its recovery from the sharp economic slump experienced in the pandemic year of 2020."

Reporting by Frank Prenesti for Sharecast.com