The German economy contracted 0.7% in the last three months of 2021, much worse than market projections of a 0.3% fall hampered by tightening curbs on the Omicron variant.
- Germany was hampered by a wave of Covid-19 cases in the last quarter, which triggered the lockdown of unvaccinated citizens in early December, followed by broader limits on social contacts.
- Factories are also struggling with an ongoing supply chain crisis, which has hampered supplies of key components like computer chips.
- In Q4, household consumption expenditure dropped on the prior quarter as government consumption expenditure posted an increase.
Gross fixed capital formation in the construction sector fell in the third quarter of 2021. The Federal Statistical Office reported that the GDP expanded by 2.8% for the full year in 2021.
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Source: Federal Statistical Office