Germany’s GDP growth in Q4 2024 was confirmed at -0.2% QoQ and -0.2% YoY in the second estimate.

• The decline in growth was a result of a -2.2% QoQ drop in exports that was exacerbated by a 0.5% QoQ increase in imports. Net exports made a -1.2 ppt contribution to overall GDP growth.
• Household consumption increased just 0.1% QoQ and was outpaced by government consumption up 0.4% QoQ.
• Gross capital formation jumped 3.9% QoQ in Q4, the second strong quarterly reading in a row, lead by a 1.0% QoQ increase in construction GFCF and an inventory build that added 0.8 ppts to GDP.
• Productivity saw another decline in Q4 as GDP per hour worked fell -0.5% QoQ after declines of -0.6% QoQ in Q2 and -0.1% QoQ in Q3
• Excluding trade and inventories, GDP growth was +0.2% QoQ.