Germany’s economy feels pressures in Q4; Faces recession fear

Germany’s GDP fell surprisingly in the fourth quarter, owing to lower consumer spending, confirming forecasts that Europe’s biggest economy was heading for a recession.

According to Destatis, “economic output declined marginally in the fourth quarter after German economy performed well over the previous three quarters despite challenging circumstances.

It was observe that the decline came after economic growth increased by 0.5 percentage in the third quarter and by 0.1 percentage in second quarter.

Current state of Germany’s economy

According to Thomas Gitzel, chief economist at VP Bank. “The colder months are turning to be difficult, although not as challenging as initially anticipated.”

The German government this week increased its 0.2 percent growth projection for this year’s Gross domestic product from a previous 0.4 percent fall forecast.