German Preliminary GDP contracts by 0.7% in Q4 vs. -0.3% expected

  • German GDP arrives at -0.7% QoQ in Q4 vs. -0.3% expected.
  • Annualized German GDP stands at 1.4% in Q4 vs. 1.8% expected.
  • EUR/USD unmoved on discouraging German Q4 growth numbers.

The German economy shrunk by 0.7% inter-quarter in the fourth quarter of 2021 when compared to the expectations of -0.3% and 1.7% booked in Q3, the preliminary report published by Destatis showed on Friday.

Meanwhile, the annualized GDP rate dropped to 1.4% in Q4 against the previous reading of 2.5% while missing the market expectations of a 1.8% figure.

EUR/USD unfazed by poor data

EUR/USD remains little affected by the below-forecasts German growth numbers.

The major was last seen trading at 1.1138, slightly off the 19-month lows of 1.1122 while losing 0.06% on the day.

About German Prelim GDP

The Gross Domestic Product released by the Statistisches Bundesamt Deutschland is a measure of the total value of all goods and services produced by Germany. The GDP is considered as a broad measure of German economic activity and health. A high reading or a better-than-expected number has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).