German Gross Domestic Product (GDP) Decreases by 0.3% in 2023

According to initial calculations by the Federal Statistical Office (Destatis), the price-adjusted Gross Domestic Product (GDP) in Germany was 0.3% lower in 2023 compared to the previous year. When adjusted for calendar effects, the economic decline was 0.1%. Ruth Brand, speaking at the “Gross Domestic Product 2023 for Germany” press conference in Berlin, noted, “The overall economic development in Germany stalled in 2023 within an environment still marked by crises.” Brand highlighted that high prices across all economic sectors, despite recent declines, dampened economic activity. Unfavorable financing conditions due to rising interest rates and reduced demand domestically and internationally further contributed to this slowdown. Consequently, the recovery of the German economy from the deep slump in the COVID-19 year of 2020 did not continue. In comparison to 2019, the year before the onset of the pandemic, the GDP in 2023 was 0.7% higher.