Germany, GDP drops by 0.2%: the recession is getting closer. The data
Setback for Europe’s economic locomotive: according to a preliminary estimate, the gross domestic product of the Germania has shrunk by 0,2% in the last three months of 2022, after an expansion of 0.4% after the summer period. Certainly not encouraging data, also undermined by the developments of the war in Ukrainewhich they ferry Berlin towards the recessiondisappointing the expectations of markets they were expecting one stagnation (arrest of growth and economic activity). By reflex, the European stock exchangesin the wake of the unexpected contraction, extended losses: Frankfurt fell back by 0.54%, Paris lost 0.51% e London it lost 0.11%. Milano marked a decline of 0.25%.
READ ALSO: S&P sees black for Europe: “In 2023 recession, Germany the worst”
Particularly, the German GDP over the year has registered a 0.5% increase in the last quarter of 2022. “After holding up well in difficult conditions in the first three quarters, the economic performance declined slightly,” said theFederal Statistical Office Destatis in a statement. For the full year, the German economy grew by 1.8%, slightly revised downwards from the first estimate.
The slowdown in the fourth quarter means that one recessiondefined as two consecutive quarters of contraction, has become more likely, as many experts expect the economy to contract again in the first quarter of 2023. Last week the German government he revised his own upwards economic forecasts for 2023 and now forecasts GDP growth of 0.2%, versus the fall forecast of a 0.4% drop.
READ ALSO: Economy, a complicated 2023 at risk of a moderate recession
GDP Sweden, Stockholm also records an unexpected contraction: -0.6%
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