The German economy fared slightly worse in the fourth quarter of 2022 than economists had expected. Overall, the country's GDP shrank by 0.2 percent compared to the previous quarter. This is reported by the AFP news agency.
It was expected that the country's economy would have flat growth, i.e. zero percent. Germany is Denmark's second largest export market. The economy in the neighboring country is therefore of great importance to many Danish export companies.
- Over the past five years, the German economy has grown by an average of only half a percent per year. The German government cannot be satisfied with that. But it is also something that worries Danish business, writes Allan Sørensen, chief economist at the Confederation of Danish Industry, in a comment on the figures.
Many Danish companies are dependent on exports to Germany or on German tourists. According to Allan Sørensen, Danish companies sell goods and services to the Germans for more than 200 billion. DKK per year.
- The economic hardship in Germany could cost orders for Danish businesses, he writes.
Danish Business: "Terrible figures"
GDP, gross domestic product, is an expression of the size of a country's economy and is the most widely used key figure to measure it. Increases or decreases show whether the economy is growing or shrinking.
Kristian Skriver, senior economist at Danish Business, also agrees that the development in the German economy is not good news for Danish companies. He calls it "terrible figures" for Danish export companies and does not expect the development to reverse anytime soon.
- Looking ahead, the outlook for the German economy is unfortunately not optimistic. In 2023, we expect the German economy to enter recession. The weakened purchasing power of German consumers will put a further damper on consumption, writes Kristian Skriver in a comment on the figures.
/ritzau/
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