The German economy contracted by 0.7% in Q4 2021, against an expected −0.3%, the Federal Office of Statistics reported. Household consumption and construction went down, whereas government purchases went up. The main reason for the slump is claimed to be the new Covid restrictions. For the year, a 2.8% growth is reported, which is not enough to reach the pre-pandemic levels.
German dependence on energy from outside resulted in a 13.5% average price increase of all imports over 2021 as a whole, the highest since 1981. However, the price increase in November alone, at 24.7%, was the highest one since the 1974 oil crisis. The energy component of import prices increased by 84% (electricity by 216.4%, gas by 138%).
