Germany posts 0.6% Q4 GDP contraction

14 February 2013

Europe's foremost financial power experienced economic contraction during the final quarter of 2012, it has emerged.

Germany's Federal Statistics Office (Destatis) announced this morning (14 February) that the nation's gross domestic product (GDP) shrank by 0.6 per cent in the three-month period between October and December last year.

This represents a marked downward movement from the respective growth figures of 0.5 per cent, 0.3 per cent and 0.2 per cent seen in the first three quarters of 2012 and the government body noted that such strong performances caused the economy to "lose steam".

"The decline of the GDP at the end of 2012 was mainly due to the comparably weak German foreign trade … exports of goods went down much more than imports of goods," Destatis added.

Despite this downturn, Andreas Rees, chief German economist at Unicredit insisted there is a "very good" chance German GDP will expand in the opening stages of 2013.

By Gary Cooper

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