The German economy shrank in the fourth quarter of 2022, down 0.2% from the previous quarter, the Federal Statistical Office said in its initial estimate.
Overall, Europe's largest economy grew by 1.8% last year despite the headwinds from elevated inflation and high energy prices. That is a notch less than the 1.9% the office had estimated.
In the fourth quarter, private consumer spending was notably lower than in the third quarter.
The German government recently said the slowdown in economic momentum at the turn of the year is likely to be shorter and milder than had been expected last autumn.
The government's latest forecast expects the economy to grow by 0.2% in 2023, but this view isn't shared by all economists.
Many believe the German economy will at best shrink slightly this year.
Others believe however that the outlook for this year has recently improved.
Because the state is providing private households and companies with billions in relief for the sharp rise in energy costs, some economists do expect slight economic growth in the current year.
At the least, Economy Minister Robert Habeck has said that there won't be a sharp contraction this year.
Business and consumer sentiment has been improving for some months.
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