German Economy Shrank 0.5 Percent in Fourth Quarter

German Economy Shrank 0.5 Percent in Fourth Quarter

The Federal Statistical Office of Germany reported that its gross domestic product shrank by 0.5 percent in the final three months of 2012, the worst quarterly performance in nearly three years, according to Reuters.

German exports and imports slid in November, confirming the weak end to the year.

The fourth quarter results pushed overall growth for 2012 down to 0.7 percent, a slowdown from the 3.0 percent seen in 2011.

An official from the Economy Ministry estimated growth in 2013 would be 0.4 percent, less than half the government’s existing forecast of 1.0 percent.