The gross domestic product (GDP) fell by 0.3% in the fourth quarter of 2021 on the third quarter of 2021 upon adjustment for price, seasonal and calendar variations.
After economic performance had increased again last summer despite growing delivery bottlenecks and material shortages, the recovery of the German economy came to a halt at the end of the year due to the fourth COVID-19 wave and another reinforcement of Covid-19 preventive measures.
According to figures from the Federal Statistical Office (Destatis), the GDP development was however more positive than reported in the first release of 28 January 2022, both regarding the fourth quarter (-0.3%) and the entire year of 2021 (+2.9%).
The results were revised accordingly. GDP was down 1.1% in the fourth quarter of 2021 compared with the fourth quarter of 2019, the quarter before the Covid-19 crisis began.
The restrictions imposed in the course of the fourth Covid-19 wave put the brakes on household final consumption expenditure. After two quarters with considerable increases, it was down 1.8% in the fourth quarter of 2021 compared with the third quarter of 2021 upon price, seasonal and calendar adjustment.
Government final consumption expenditure, in contrast, increased by 1.0% and had a stabilising effect. Gross fixed capital formation in machinery and equipment was up 0.9% on the third quarter of 2021 after price, seasonal and calendar adjustment. Gross fixed capital formation in construction remained roughly at the previous quarter's level.
Foreign trade increased in the fourth quarter of 2021. Exports of goods and services were up 4.8% compared with the third quarter of 2021, after price, seasonal and calendar adjustment. Total imports rose slightly more (+5.1%) as the imports of services were up on the previous quarter once again.
In the fourth quarter of 2021, the price-, seasonally and calendar-adjusted gross value added decreased by 0.9% on the third quarter of 2021. Diverging trends were recorded for the individual economic sectors.
Economic performance improved in manufacturing (+1.9%) and construction (+1.6%), whereas the recovery that had started in many service branches during the summer was stopped by the fourth COVID-19 wave.
The price, seasonally and calendar-adjusted gross value added of business services, decreased by 0.9% in the fourth quarter of 2021 on the third quarter of 2021. Economic performance was also down in trade, transport, accommodation and food services (-1.6%) as well as public services, education and health (-3.9%).
Other services, which include entertainment and recreation, were again hit hard by the fourth wave and the reinforcement of Covid-19 preventive measures at year-end, recording a decline of 10.0%.
GDP was up a price-adjusted 1.8% in the fourth quarter of 2021 on the fourth quarter of 2020 (also price- and calendar-adjusted). The delivery bottlenecks and the worsening of the Covid-19 situation at the end of the year slowed growth in 2021. GDP rose by 10.8% year on year in the second quarter of 2021 and by 2.8% in the third quarter of 2021. ■