German Preliminary GDP prints -0.3% QoQ in Q4, as expected

• German GDP arrives at -0.3% QoQ in Q4 vs. -0.3% forecast.
• Annual German GDP drops 0.2% in Q4 vs. -0.2% estimate.
• EUR/USD pays little heed to the German Q4 GDP report.

The German economy averted a technical recession, shrinking 0.3% over the quarter in the final quarter of 2023, as against the 0% revision in Q3, according to the preliminary data published by Destatis on Tuesday. The reading matched the expected 0.3% contraction.

Meanwhile, the annual GDP rate declined by 0.2% in Q4 when compared to the third quarter’s revised figure of -0.3% while coming in line with the market forecast.

EUR/USD reaction to the German GDP data

EUR/USD pays little heed to the German GDP report, losing 0.12% on the day to trade at 1.0820. The pair awaits the Eurozone Preliminary GDP data for fresh trading impetus.

(This story was corrected on January 30 at 09:15 GMT to update the previous figures)

About German Preliminary 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).