Germany's economy contracted by 0.3% during the first quarter of 2023, as revised from the initial estimate of no growth. This revised figure indicated a second consecutive quarter of economic decline, plunging Europe's largest economy into a recession, due to persistent high price increases and a surge in borrowing costs. Household consumption shrank by 1.2% as consumers reduced spending on various categories such as food & beverages, clothing & footwear, and furnishings. Additionally, there was a decline in the purchase of new cars, potentially influenced by the discontinuation of grants for plug-in hybrids and reduced grants for electric vehicles at the beginning of 2023. Government spending also saw a significant decline of 4.9%, while fixed investment showed a strong rebound of 3.0%, driven by construction and machinery & equipment. Finally, net exports contributed 0.7 percentage points to the GDP as exports increased and imports decreased. source: Federal Statistical Office
GDP Growth Rate in Germany averaged 0.47 percent from 1970 until 2023, reaching an all time high of 9.00 percent in the third quarter of 2020 and a record low of -9.50 percent in the second quarter of 2020. This page provides the latest reported value for - Germany GDP Growth Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Germany GDP Growth Rate - data, historical chart, forecasts and calendar of releases - was last updated on June of 2023.
GDP Growth Rate in Germany is expected to be 0.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Germany GDP Growth Rate is projected to trend around 0.50 percent in 2024 and 0.40 percent in 2025, according to our econometric models.