BERLIN, Jan 13 (Reuters) – Germany’s economic output likely stagnated in the last quarter of last year and grew 1.9% for the full year 2022, the German Federal Statistics Office said on Friday, suggesting Europe’s biggest economy could narrowly escape a recession the winter.
The 1.9% increase in gross domestic product (GDP) for the full year compared to the medium-term forecast in a Reuters poll of economists for 1.8% growth in 2022.
The first figures for the fourth quarter suggest that Germany could just avoid a recession – defined as two consecutive quarters of contraction.
There are mounting signs that the economy, which grew in the third quarter, could avert the worst of the downturn triggered by a slump in energy supplies from Russia following the invasion of Ukraine.
Business morale rose more-than-expected in December as the outlook for the economy improved despite the energy crisis and high inflation, a survey showed last month.
Earlier this week, government economic adviser Monika Schnitzer told Reuters that inflation in Germany has likely peaked as global energy prices have fallen, adding that she expects natural gas prices to fall further this year .
German inflation fell for the second straight month in December, on the back of falling energy prices and the government’s one-off payment of household energy bills, with EU-harmonized consumer prices rising 9.6% yoy.
Germany’s government deficit ratio stood at 2.6% of GDP in 2022, the statistics office added.
Reporting by Miranda Murray and Maria Martinez Writing by Paul Carrel, editing by Kirsti Knolle
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