Record inflation and the energy price shock weighed on the German economy at the end of last year. According to the first findings of the Federal Statistical Office, there are signs of stagnation for the last three months of 2022 after three quarters of growth in a row. The Wiesbaden authorities published preliminary figures on the development of gross domestic product (GDP) in the fourth quarter today.
Overall, Europe's largest economy held its own last year despite the headwinds resulting from the Ukraine war. According to preliminary figures, GDP rose by 1.9 percent. That is less than a year earlier, when economic output increased by 2.6 percent after the Corona crash. But the long gloomy forecasts did not come true. Despite all the burdens, the German economy exceeded the level before the Corona crisis for the first time.
Consumers and companies more confident again
Economists are no longer assessing the prospects for 2023 as bleakly as they did after the start of the Russian war of aggression against Ukraine in February last year. Consumers and companies are also somewhat more confident again.
According to many economists, the German economy will at best shrink slightly this year. Some economists are expecting slight economic growth because the state is providing billions in relief for private households and companies in connection with the sharp rise in energy costs. The federal government is anticipating a 0.2 percent increase in GDP.
According to the federal government's annual economic report, the slowdown in economic momentum at the turn of the year 2022/23 is likely to be shorter and milder than expected in autumn. Government stabilization measures for households and companies as well as their adjustments to the high energy prices and the associated gas savings also contributed to this.