German GDP fell in 2023 for the first time since Covid-19 in 2020 amid high inflation, rising interest rates and a decline in activity both domestically and abroad. This is stated in the report of the Federal Statistical Agency of Germany (Destatis), which presented preliminary data.
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Falling GDP
The size of the economy, adjusted for inflation, decreased by 0.3% compared to 2022, according to a report by the German Federal Statistical Agency (Destatis), which presented preliminary data. The decline in GDP, adjusted for inflation and calendar factors, was 0.1%.
“The overall economic performance in Germany worsened in 2023 in an environment characterized by multiple crises,” said Destatis President Ruth Brand.
Read: The German economy showed one of the worst results in 23 years
“Despite the recent weakening of inflation, prices remained high at all stages of the economic process and restrained economic growth. Adverse financial conditions associated with rising interest rates and weakening domestic and external demand also had their consequences,” Brand noted.
