German 4Q GDP Growth Revised Up in Second Estimate

Germany's economy grew in the fourth quarter by more than reported in the first release, the German statistics office Destatis said Wednesday.

Gross domestic product for the fourth quarter increased by an adjusted 0.3% from the previous quarter, according to Destatis. This is above the preliminary estimate of 0.1% growth and beat economists' expectations of a 0.1% expansion in The Wall Street Journal's survey.

After the historic 9.7% slump in GDP in the second quarter, the German economy posted a record expansion in output of 8.5% in the third quarter.

"In the fourth quarter, the recovery process slowed due to the second coronavirus wave and another lockdown imposed at the end of the year," Destatis said.

GDP shrank 3.7% on year in the fourth quarter on a calendar and price-adjusted basis, Destatis said. This compares with a 3.9% contraction in the preliminary estimate. Economists polled by The Wall Street Journal had forecast a 3.9% decline.

Due to the coronavirus restrictions, household consumption fell 3.3% in the fourth quarter, Destatis said. Government consumption also recorded a 0.5% decrease in the quarter, following increases in the first three quarters of the year.

Fixed capital formation in construction contributed to growth in the fourth quarter, as it rose 1.8%. Fixed capital formation in machinery and equipment was roughly flat from the previous quarter.

Foreign trade increased at the end of the year and had an upward effect on GDP, Destatis said. Exports of goods and services were up 4.5% compared with the third quarter and imports increased 3.7%, the statistics office said.

Write to Maria Martinez at maria.martinez@wsj.com


  (END) Dow Jones Newswires
  02-24-21 0234ET
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