Germany’s economy contracted at a weaker pace in the fourth quarter of last year than initially thought, despite being hit by supply chain issues and the pandemic, official data shows. released on Friday.
Gross domestic product in Europe’s biggest economy fell by 0.3% in the last three months of 2021 compared to the previous quarter, the federal statistics office Destatis said.
Destatis had reported in January a decline of 0.7% quarter on quarter.
Growth in the fourth quarter is 1.8% higher than the previous year.
A lack of raw materials and components has hammered the industry, particularly the automotive sector which saw a 10.1% drop in sales in 2021 as the lack of semiconductor chips temporarily shuttered many factories.
A spike in energy prices, particularly gas and gasoline, also weighed on the manufacturing industry.
Meanwhile, government restrictions aimed at mitigating the fourth wave of the coronavirus outbreak have reduced demand for services and at outlets.
Germany plans to lift most of its pandemic rules in March, which economists say will help first-quarter growth recover, but may not be enough to avoid a technical recession, the central bank Bundesbank said. this week.
A recession is defined as two consecutive quarters of economic contraction.
And any spring rebound could be thwarted by Russia’s invasion of Ukraine and heavy Western sanctions imposed on Moscow.