German Economy Shrinks 0.4 Percent in 4th Quarter, Weak Start to 2023 Seen

German Economy Shrinks 0.4 Percent in 4th Quarter, Weak Start to 2023 Seen
The sun sets behind the skyline of Frankfurt, Germany, on July 5, 2022. Kai Pfaffenbach/Reuters
Reuters
Updated:

BERLIN—The German economy contracted more strongly than expected in the final three months of 2022, as inflation and the energy crisis took their toll on household consumption and capital investment.

The German economy shrank by 0.4 percent in the fourth quarter of 2022 compared with the previous three months, the statistics office said on Friday.