German economy shrinks 0.3% in 4th quarter

By Tuba Ongun

ANKARA (AA) — Germany's economy contracted 0.3% in the fourth quarter of last year, compared to July-September, meeting the market consensus, according to preliminary estimates released on Tuesday.

The German economy had escaped recession with upwardly revised data showing the country posting 0% gross domestic product growth in the third quarter of 2023.

The contraction in October was led by a marked decline in gross fixed capital formation in construction and in machinery and equipment, according to the country's statistical authority Destatis.

On an annual basis, Europe's largest economy shrank 0.2% in the final quarter of 2023, above economists' estimates of a 0.1% decline.

Germany's GDP fell 0.3% from a year earlier over the course of 2023, in line with the very early estimate.