Germany's economy grew by 1.9% in 2022, latest data shows
January 13, 2023
Germany managed to stave off a full recession in 2022, with the economy performing better than expected. Although Russia's war in Ukraine and high energy prices slowed growth, the economy "managed to perform well."
Germany saw its annual growth dip slightly in 2022, according to data published by the federal statistics agency Destatis on Friday. However, even accouting for unusually high inflation in the region of 10% in the peak months of 2022, economic output grew.
The rate of growth in 2022, measured in gross domestic product (GDP), reached 1.9%, down from the 2.6% recorded in 2021.
However, the worst fears of a painful recession have been tempered by a slight, but unexpected, growth of 0.4% in the third quarter of 2022. Figures on the development for Germany's GDP in the last quarter of the year will be published later this month.
High energy prices have been blamed for the weak performance with the Russian invasion of Ukraine seen as one of the main underlying factors.
"Price-adjusted GDP in 2022 grew by 1.9%," Destatis wrote on Twitter. "Despite the war in Ukraine and the energy crisis, the German economy saw further recovery in the third year of the coronavirus pandemic."
Better performance than expected
"In 2022, the overall economic situation in Germany was affected by the consequences of the war in Ukraine and the extremely high energy price increases," said Destatis president Ruth Brand at a press conference on Friday.
"Although these difficult conditions persist, the German economy as a whole managed to perform well in 2022," she added.
The government in Berlin had forecast in October that GDP would shrink to a meager 0.4% for the whole year.