German GDP shrinks by 0.3%

BERLIN, Jan 15 (KUNA) -- German's gross domestic product fell by 0.3 percent in 2023, compared to 2022, according to data released by the Federal Statistical Office on Monday.

In the annual report, the office stated that despite recent price declines, the rates remained high at all stages in the economic process and put a damper on economic growth, adding that there were unfavorable financing conditions due to rising interest rates and lower demand from home and abroad.
According to the report, the inflation rate last year reached 5.9 percent, unprecedented since three decades ago, which was the main reason of the economy decline.
Since the outbreak of the Ukrainian war in February 2022, the rate of inflation prices has grown significantly from the increase in production costs, due to the rising prices of energy products. (end) anj.ahm.