Germany’s economy stalled in the fourth quarter as consumption lost steam, Germany’s Federal Statistical Office said Tuesday, confirming a preliminary estimate.
The quarter-on-quarter comparison shows that while consumption was the main driving force of growth in the third quarter, it slowed markedly in the fourth quarter. Household consumption stagnated in the fourth quarter and government consumption rose only 0.3%, Destatis said.
As previously reported, gross domestic product–the broadest measure of goods and services produced in an economy–remained flat at 0.0% compared with the previous quarter. GDP grew 0.4% on year in the fourth quarter on a calendar and price-adjusted basis, Destatis said, confirming the first estimate.
Before last week’s preliminary estimate, weak data for manufacturing orders and industrial production in December had raised fears that the economy had stagnated or even contracted in the fourth quarter.
While foreign trade was another driver of economic growth in the third quarter, it slowed economic activity in the fourth quarter. Destatis said exports were down 0.2% in the quarter, while imports rose 1.3%.
Gross fixed capital formation went up 0.6% in the construction sector due to the mild weather, while it decreased in machinery and equipment by 2.0%.
German GDP grew 0.2% in third quarter and declined 0.2% in the second quarter, after having grown 0.5% in the first quarter.
The German economy grew 0.6% in 2019 on a calendar and price-adjusted basis, Destatis said.
