Germany’s economy shrank 0.7% in the fourth quarter as COVID-19 revived

The German economy shrank 0.7% in the fourth quarter of last year amid the resurgence of Berlin-coronavirus infections and new regulations, official figures said Friday.

The quarterly decline reported by the Federal Bureau of Statistics continued for two quarters of solid profits brought about despite a sustainable supply bottleneck.

Gross domestic product increased 2.8% overall last year, recovering from the 4.6% plunge in 2020, when the pandemic blockade was the most severe, the agency said. That number has been revised slightly upwards from the 2.7 percent tentative figure reported earlier this month by the office.

This week, the government lowered its growth forecast for this year to 3.6%, down from Germany’s previous government forecast of 4.1% in late October. Economy Minister Robert Habeck told Congress on Friday that he expects growth of 2.3 percent in 2023.

“Not only because of Corona’s pandemic and restrictive measures, but also because of foreign policy conditions, of course, first-quarter performance will be curtailed. During times of crisis, the investment climate will be restrained,” Harbeck said. It’s often a time of deterioration. ” Tensions with Russia over Ukraine. “We expect to reach pre-crisis levels in the second quarter of this year.”

In Germany, COVID-19 infections are currently on the rise due to highly contagious variants of Omicron.

However, a carefully watched survey on Tuesday showed that after a six-month slide, business confidence recovered unexpectedly in January.

This increase is due to a significant improvement in the manager’s outlook over the next six months, despite a worsening assessment of the current situation.

Associated Press