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.

Dhwani Mehta FXStreet

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).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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