BERLIN (dpa-AFX) - The German economy contracted in the fourth quarter, in line with estimate, as the sharp decline in exports offset the improvement in consumption.
Gross domestic product declined 0.2 percent from a quarter ago, reversing a 0.1 percent sequential growth in the third quarter, detailed report from Destatis showed on Tuesday. The figures matched the estimate published on January 30.
On a yearly basis, GDP dropped by calendar-adjusted 0.2 percent, as estimated, after falling 0.3 percent a quarter ago.
Price-adjusted GDP was down 0.4 percent year-on-year in the fourth quarter, in contrast to the 0.1 percent growth logged each in the preceding two quarters.
The breakdown of GDP showed that exports declined the most since the second quarter of 2020. Exports of goods and services were down 2.2 percent sequentially. On the other hand, imports of goods and services grew 0.5 percent.
Gross fixed capital formation in machinery and equipment dropped 0.3 percent, marking the fifth consecutive decrease. By contrast, gross fixed capital formation in construction advanced 1.0 percent, partly owing to the mild weather conditions.
Overall, gross fixed capital formation was 0.4 percent higher than in the third quarter of 2024.
Final consumption expenditure registered a quarterly increase of 0.2 percent, with the 0.4 percent rise in government spending outpacing household final consumption expenditure growth of 0.1 percent.
For the whole year of 2024, the statistical office confirmed the year-on-year decline of 0.2 percent.
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