Press release No. 451 of 24 November 2023
Gross domestic product (GDP), 3rd quarter of 2023
-0.1% on the previous quarter (price, seasonally and calendar adjusted)
-0.8% on the same quarter a year earlier (price adjusted)
-0.4% on the same quarter a year earlier (price and calendar adjusted)
WIESBADEN – The gross domestic product (GDP) fell by 0.1% in the third quarter of 2023 compared with the second quarter of 2023 after adjustment for price, seasonal and calendar variations. The Federal Statistical Office (Destatis) also reports that the result published in the first release of 30 October 2023 has therefore been confirmed. “After the weak economic development seen in the first half of 2023, the German economy began the second half of the year with a slight drop in performance,” says Ruth Brand, President of the Federal Statistical Office. Economic performance was virtually stagnant in the first two quarters of the year (first quarter: 0.0%, second quarter: +0.1%).
| 2022 | 2023 | |||||
|---|---|---|---|---|---|---|
| 1st qtr | 2nd qtr | 3rd qtr | 4th qtr | 1st qtr | 2nd qtr | 3rd qtr |
| 1.0 | -0.1 | 0.4 | -0.4 | 0.0 | 0.1 | -0.1 |
Quarter-on-quarter decline in final consumption expenditure – positive contributions from gross fixed capital formation
In the third quarter of 2023, final consumption expenditure as a whole remained around the same level as the previous quarter (-0.1%) after adjustment for price, seasonal and calendar variations. While household final consumption expenditure was down on the second quarter of 2023 (-0.3%), government final consumption expenditure increased somewhat for the first time in more than a year (+0.2%). Positive contributions came from gross fixed capital formation. Compared with the previous quarter, gross fixed capital formation in machinery and equipment in the third quarter increased by 1.1% and gross fixed capital formation in construction by 0.4% after price, seasonal and calendar adjustment.
Foreign trade decreased in the third quarter of 2023 on a price, calendar and seasonally adjusted basis. Total exports of goods and services fell by 0.8% compared with the second quarter of 2023. Imports declined even more (-1.3%).
Development of gross value added differed across economic sectors
In the third quarter of 2023, gross value added as a whole increased by 0.1% on the second quarter of 2023 after adjustment for price, seasonal and calendar variations, with trends diverging across sectors. Economic performance was down markedly by 1.3% in industry (excluding construction). A substantial decline was recorded for the energy supply sector, and manufacturing saw a 0.9% drop in gross value added on the previous quarter. This was mainly due to a considerable decrease in the production of motor vehicles, trailers and semi-trailers. By contrast, gross value added was up on the previous quarter in construction (+0.4%) and in nearly all service branches. The increase was largest in the aggregate sector of trade, transport, accommodation and food services (+1.7%) and for financial and insurance activities (+1.1%). An exception was the public services, education, health sector, with gross value added declining by 0.2%.
Gross domestic product down year on year
GDP in the third quarter of 2023 was down a price adjusted 0.8% compared with the third quarter of 2022. After price and calendar adjustment, the decrease was smaller (-0.4%), as there was one working day less than in the same period a year earlier.
| 2022 | 2023 | |||||
|---|---|---|---|---|---|---|
| 1st qtr | 2nd qtr | 3rd qtr | 4th qtr | 1st qtr | 2nd qtr | 3rd qtr |
| 4.3 | 1.6 | 1.2 | 0.2 | 0.2 | -0.4 | -0.8 |
Year-on-year decline in final consumption expenditure and foreign trade
Price adjusted household final consumption expenditure was 2.0% lower compared with a year earlier. Here, the persistently high prices continued to have a noticeable effect especially on food and beverages, restaurant and accommodation services and semi-durables such as clothing. In each of these categories, considerably less was spent than in the previous year, after adjustment for price variations. By contrast, there were positive signs from the transport sector, partly due to more purchases of passenger cars. Government final consumption expenditure also declined year on year (-1.6%, price adjusted), though somewhat less than household final consumption expenditure. Central government, in particular, spent less on final consumption expenditure than a year earlier. One reason for the decline was the substantially lower expenditure on Covid-19 vaccines compared with the third quarter of 2022.
Gross fixed capital formation in machinery and equipment increased by a price adjusted 1.1% year on year. More was invested especially in commercial vehicles than a year before. By contrast, gross fixed capital formation in construction decreased by a total of 1.0% after price adjustment. A larger decline was prevented by the positive development recorded for building completion work and by construction prices rising less sharply. Compared with the third quarter of 2022, domestic uses on the whole were down a price adjusted 1.7% in the third quarter of 2023.
Foreign trade decreased substantially year on year. Exports of goods and services declined by 3.8% (price adjusted) in the third quarter of 2023 on the same quarter a year earlier. An even larger drop was observed for imports (-5.7%) in the same period. This was mainly due to a substantial decline in goods imports (-8.2%), in particular mineral fuel imports.
Large year-on-year decrease in gross value added of industry
Overall, the price adjusted gross value added in the third quarter of 2023 was 0.7% lower than in the third quarter of 2022.
Economic performance in industry (excluding construction) was down considerably (-3.8%) compared with the same quarter a year earlier. Production declined in industry and especially in the energy supply sector, whereas construction recorded an increase for the first time since the beginning of 2022 (+1.2%). This is attributable to the positive development in civil engineering and building completion work.
The price adjusted gross value added in the service sector as a whole was virtually on the level of the third quarter of 2022 (+0.1%). The development was positive in information and communication (+2.1%), other services (+1.1%), real estate activities (+1.0%) and business services (+0.3%), while economic performance was down on the same quarter of the previous year in the aggregate sectors of public services, education, health (-0.5%) and trade, transport, accommodation and food services (-0.4%).
Employment at new record high despite weaker autumn upturn
The economic performance in the third quarter of 2023 was achieved by roughly 46.0 million persons in employment whose place of employment was in Germany. This represented an increase of 337,000, or 0.7%, compared with the third quarter of 2022. At +0.3% (not seasonally adjusted), the usual autumn upturn on the previous quarter was however somewhat lower than a year earlier. The number of persons in employment reached a new all-time high nevertheless (see press release no. 444 of 16 November 2023 (only in German)).
The average number of hours worked per person in employment was down by 0.7% compared with the third quarter of 2022. This was in part attributable to a calendar effect as there was one working day less than a year earlier, and to overtime reduction and a higher part-time employment rate. The labour volume of the overall economy - the higher number of persons in employment multiplied by the number of hours worked per person in employment - remained unchanged (0.0%) in the same period. This is shown by provisional calculations of the Institute for Employment Research (IAB) of the Federal Employment Agency.
Overall labour productivity (price adjusted GDP per hour worked by persons in employment) fell 0.8% on the same quarter of the previous year, according to provisional calculations. Labour productivity per person in employment was 1.6% lower year on year.
Higher increase in income than in nominal consumption, savings ratio up on the previous year
At current prices, GDP rose by 6.0% and the gross national income by 6.4% in the third quarter of 2023 compared with a year earlier. Net national income at factor costs was up 6.1% on the third quarter of 2022. The compensation of employees increased by 6.9% according to provisional calculations; property and entrepreneurial income rose by 4.2%. Average gross wages and salaries per employee went up by 6.4% year on year in the third quarter of 2023. Net average earnings increased even more (+7.9%) due to the weak development of wage tax revenue. This can probably be attributed mainly to tax-free payments of premiums compensating for inflation and to higher wage settlements. In addition, the statutory minimum wage was raised in October 2022, which led to overproportionate increases in the average earnings of marginally employed persons.
Total gross wages and salaries rose by 7.3% on a year earlier as the number of employees also went up once more. At +3.8%, the year-on-year increase in household final consumption expenditure at current prices was considerably smaller than in the previous quarters. The savings ratio was higher in the third quarter of 2023 (10.3%) than in the previous year (9.6%) because households’ disposable income (+4.7%) grew more strongly than their consumption expenditure.
Germany's economy compared internationally
Weak economic performance was also registered in the other large Member States of the European Union (EU) at the beginning of the second half-year. The price, seasonally and calendar adjusted GDP stagnated quarter on quarter in Italy and in the EU as a whole (0.0%), while the economy grew slightly in France (+0.1%) and Spain (+0.3%). At +1.2%, GDP increased markedly more in the United States (USA) than in most European countries. Compared with the same period a year earlier, Germany (-0.4%) ranked more clearly below the EU (+0.1%) in terms of economic development.
| USA | Euroarea | EU27 | France | Italy | Spain | Germany | |
|---|---|---|---|---|---|---|---|
| Previous quarter: change on the second quarter of 2023; Same quarter of the previous year: change on the third quarter of 2022. Source: Eurostat and own calculations | |||||||
| Previous quarter | 1.2 | -0.1 | 0.0 | 0.1 | 0.0 | 0.3 | -0.1 |
| Same quarter of the previous year | 2.9 | 0.1 | 0.1 | 0.7 | 0.0 | 1.8 | -0.4 |
A detailed comparison of the EU Member States’ growth rates is available on our web page "Europe in figures".
Revision of previous results
In addition to the detailed results provided for the third quarter of 2023, the Federal Statistical Office has also reviewed the results for all three quarters of 2023. Taking into account the statistical information that became available after the first release of 30 October 2023, this resulted only in slight revisions of the gross domestic product figures published previously. More detailed data on the recalculations are shown in the table “Comparison between old and new figures” in this press release.
Methodological notes
The differing comparative periods must be taken into account in all press releases on short-term indicators. Short-term economic monitoring focuses on comparisons of seasonally and calendar adjusted figures with those of the previous month or previous quarter. These reflect short-term economic trends. Year-on-year comparisons enable long-term comparisons of levels and are hardly influenced by seasonal fluctuations. The results of quarter-on-quarter and year-on-year comparisons may differ considerably because of the Covid-19 crisis and the war in Ukraine. The current GDP results also still are subject to greater uncertainties than usual. This applies in particular to the price, seasonally and calendar adjusted quarterly data.
More information:
More detailed results are contained in tables 81000 of the GENESIS-Online database and our publications Fachserie 18 “National Accounts“, Series 1.2 “Quarterly Results“ and Series 1.3 „Seasonally adjusted quarterly results using X13“. A long time series containing quarterly results on the gross domestic product since the first quarter of 1970 is available in the “Volkswirtschaftliche Gesamtrechnungen“ statistical report (only in German).
GDP data are available also on Dashboard Germany at www.dashboard-deutschland.de (only in German). This data portal of the Federal Statistical Office combines up-to-date indicators from official statistics producers and other data providers on the topics of the economy, finance, health and mobility. The portal also contains the Economic Pulse Monitor tool (only in German) for real-time economic monitoring.
| Unadjusted figures | Figures according to X13 price adjusted | |||||||
|---|---|---|---|---|---|---|---|---|
| At current prices | Price adjusted, chain-linked | Seasonally and calendar adjusted | Calendar adjusted | |||||
| EUR billion | % 1 | 2015 = 100 | % 1 | 2015 = 100 | % 2 | % 1 3 | ||
| 1 Change on the previous year or the same quarter of the preceding year in %. 2 Change on the previous year or quarter in %. 3 As for years the calendar adjusted values equal the seasonally and calendar adjusted values (except for differences due to rounding). qtr = quarter | ||||||||
| 2021 | 3,617.45 | 6.3 | 106.30 | 3.2 | 106.04 | 3.1 | 3.1 | |
| 2022 | 3,876.81 | 7.2 | 108.22 | 1.8 | 108.03 | 1.9 | 1.9 | |
| 2022 | 1st qtr | 943.34 | 9.1 | 108.03 | 4.3 | 108.05 | 1.0 | 4.0 |
| 2nd qtr | 950.28 | 7.7 | 106.73 | 1.6 | 107.91 | -0.1 | 1.5 | |
| 3rd qtr | 976.58 | 5.8 | 109.21 | 1.2 | 108.30 | 0.4 | 1.3 | |
| 4th qtr | 1,006.61 | 6.2 | 108.90 | 0.2 | 107.86 | -0.4 | 0.8 | |
| 2023 | 1st qtr | 1,006.63 | 6.7 | 108.24 | 0.2 | 107.86 | 0.0 | -0.1 |
| 2nd qtr | 1,009.82 | 6.3 | 106.30 | -0.4 | 108.01 | 0.1 | 0.1 | |
| 3rd qtr | 1,035.27 | 6.0 | 108.31 | -0.8 | 107.87 | -0.1 | -0.4 | |
| New result | Previous result | Difference | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Figures adjusted for seasonal and calendar effects using X13 | Figures adjusted for calendar effects using X13 | Unadjusted figures | Figures adjusted for seasonal and calendar effects using X13 | Figures adjusted for calendar effects using X13 | Unadjusted figures | Figures adjusted for seasonal and calendar effects using X13 | Figures adjusted for calendar effects using X13 | Unadjusted figures | ||
1 Seasonally and calendar adjusted figures: change on the previous quarter; qtr = quarter | ||||||||||
| Change, percent 1 | Percentage points | |||||||||
| 2023 | 1st qtr | 0.0 | -0.1 | 0.2 | 0.0 | -0.2 | 0.2 | 0.0 | 0.1 | 0.0 |
| 2nd qtr | 0.1 | 0.1 | -0.4 | 0.1 | 0.0 | -0.4 | 0.0 | 0.1 | 0.0 | |
| 3rd qtr | -0.1 | -0.4 | -0.8 | -0.1 | -0.3 | -0.8 | 0.0 | -0.1 | 0.0 | |
| 2022 | 2023 | ||||||
|---|---|---|---|---|---|---|---|
| 1st qtr | 2nd qtr | 3rd qtr | 4th qtr | 1st qtr | 2nd qtr | 3rd qtr | |
| 1 Including acquisitions less disposals of valuables and the statistical difference between production and expenditure approach. 2 Contributions to growth of price-adjusted GDP, percentage points. 3 Only seasonally adjusted. qtr = quarter | |||||||
| Unadjusted figures Change on the previous year | |||||||
| Final consumption expenditure | 7.1 | 4.6 | 1.3 | 0.1 | -0.9 | -1.5 | -1.9 |
| Household final consumption expenditure | 8.4 | 6.0 | 1.8 | 0.2 | -0.2 | -0.8 | -2.0 |
| Government final consumption expenditure | 4.5 | 1.6 | 0.1 | 0.1 | -2.4 | -3.2 | -1.6 |
| Gross capital formation | -0.1 | -1.0 | 9.0 | 4.9 | 1.4 | 3.0 | -1.3 |
| Gross fixed capital formation | 1.7 | -1.8 | 1.7 | -0.8 | 0.2 | 0.4 | -0.2 |
| Gross fixed capital formation in construction | 3.2 | -3.6 | -1.6 | -4.8 | -3.3 | -1.8 | -1.0 |
| Gross fixed capital formation in machinery and equipment | 0.9 | 0.7 | 9.5 | 4.9 | 7.2 | 4.6 | 1.1 |
| Other fixed assets | -1.6 | -1.3 | -1.3 | 1.0 | -0.8 | -0.8 | -0.6 |
| Changes in inventories 1 2 | -0.4 | 0.2 | 1.7 | 1.3 | 0.3 | 0.7 | -0.3 |
| Domestic uses | 5.3 | 3.2 | 3.1 | 1.2 | -0.3 | -0.4 | -1.7 |
| Exports | 4.6 | 3.7 | 5.3 | -0.2 | 1.1 | -2.0 | -3.8 |
| Imports | 7.1 | 7.8 | 10.3 | 1.8 | 0.5 | -2.2 | -5.7 |
| Balance of exports and imports (net exports) 2 | -0.7 | -1.5 | -1.8 | -0.9 | 0.3 | 0.0 | 0.9 |
| Gross domestic product | 4.3 | 1.6 | 1.2 | 0.2 | 0.2 | -0.4 | -0.8 |
| memorandum item: | |||||||
| GDP per person in employment | 2.7 | 0.0 | 0.0 | -0.9 | -0.8 | -1.3 | -1.6 |
| GDP per hour worked by persons in employment | 1.2 | 1.3 | -1.4 | 1.1 | -0.8 | -1.2 | -0.8 |
| Seasonally and calendar adjusted figures change on the previous quarter | |||||||
| Final consumption expenditure | 0.7 | -0.1 | 0.6 | -0.8 | -0.9 | 0.0 | -0.1 |
| Household final consumption expenditure | 0.5 | -0.3 | 1.4 | -1.1 | -0.8 | 0.2 | -0.3 |
| Government final consumption expenditure | 1.1 | 0.4 | -1.4 | -0.1 | -1.4 | -0.4 | 0.2 |
| Gross capital formation | 3.0 | 2.2 | 1.6 | -0.6 | -1.0 | 2.6 | -1.1 |
| Gross fixed capital formation | 2.2 | -1.6 | 1.0 | -1.3 | 1.7 | -0.3 | 0.6 |
| Gross fixed capital formation in construction | 3.3 | -3.9 | -0.6 | -2.0 | 2.7 | -0.9 | 0.4 |
| Gross fixed capital formation in machinery and equipment | 1.9 | 1.6 | 4.2 | -1.5 | 2.1 | 0.7 | 1.1 |
| Other fixed assets | -0.6 | 0.3 | 0.1 | 0.8 | -1.6 | 0.0 | 0.3 |
| Changes in inventories 1 2 | 0.2 | 0.8 | 0.2 | 0.1 | -0.6 | 0.7 | -0.4 |
| Domestic uses | 1.2 | 0.5 | 0.8 | -0.7 | -1.0 | 0.7 | -0.4 |
| Exports | -0.1 | 0.9 | 1.0 | -1.1 | -0.2 | -0.9 | -0.8 |
| Imports | 0.0 | 2.3 | 2.1 | -1.8 | -2.2 | 0.1 | -1.3 |
| Balance of exports and imports (net exports)2 | -0.1 | -0.6 | -0.5 | 0.3 | 1.0 | -0.5 | 0.2 |
| Gross domestic product (GDP) | 1.0 | -0.1 | 0.4 | -0.4 | 0.0 | 0.1 | -0.1 |
| memorandum item: | |||||||
| GDP per person in employment | 0.6 | -0.4 | 0.2 | -0.6 | -0.3 | -0.1 | -0.1 |
| GDP per hour worked by persons in employment 3 | 0.5 | 0.0 | -0.2 | 0.7 | -1.2 | -0.4 | 0.1 |
| 2022 | 2023 | ||||||
|---|---|---|---|---|---|---|---|
| 1st qtr | 2nd qtr | 3rd qtr | 4th qtr | 1st qtr | 2nd qtr | 3rd qtr | |
| qtr = quarter | |||||||
| Unadjusted figures Change on the previous year | |||||||
| Agriculture, forestry and fishing | -6.9 | -6.0 | -6.2 | -5.6 | 4.1 | 4.0 | 4.0 |
| Industry, excluding construction | 0.7 | -0.9 | 0.3 | -2.1 | 0.3 | -2.0 | -3.8 |
| including: | |||||||
| Manufacturing | 0.0 | -0.9 | 0.9 | -1.1 | 2.1 | 0.1 | -1.8 |
| Construction | 4.3 | -3.7 | -4.9 | -7.0 | -1.6 | -1.0 | 1.2 |
| Trade, transport, accommodation and food services | 8.3 | 5.1 | 1.6 | -0.9 | 0.6 | -1.2 | -0.4 |
| Information and communication | 5.1 | 4.1 | 6.8 | 3.8 | 2.6 | 3.0 | 2.1 |
| Financial and insurance activities | 4.6 | 3.0 | 2.9 | 6.3 | 2.2 | -0.7 | -1.2 |
| Real estate activities | 1.6 | 1.2 | 0.8 | -0.3 | 0.8 | 0.4 | 1.0 |
| Business services | 6.7 | 1.5 | 1.0 | 1.0 | -0.2 | 0.4 | 0.3 |
| Public services, education, health | 2.6 | 2.4 | 2.5 | 3.1 | 2.7 | 0.7 | -0.5 |
| Other services | 8.8 | 7.5 | 2.4 | 5.7 | 1.7 | 0.9 | 1.1 |
| Gross value added, total | 3.7 | 1.7 | 1.3 | 0.3 | 0.8 | -0.3 | -0.7 |
| Seasonally and calendar adjusted figures change on the previous quarter | |||||||
| Agriculture, forestry and fishing | -8.8 | 2.4 | 0.3 | 0.6 | 1.1 | 1.9 | 0.3 |
| Industry, excluding construction | -1.4 | 0.6 | 0.4 | -0.6 | -0.5 | -0.5 | -1.3 |
| including: | |||||||
| Manufacturing | -1.3 | 0.5 | 0.7 | 0.4 | -0.1 | 0.2 | -0.9 |
| Construction | 0.7 | -2.7 | -2.1 | -2.4 | 5.2 | -0.7 | 0.4 |
| Trade, transport, accommodation and food services | -0.3 | 0.1 | 1.2 | -1.2 | -0.4 | 0.1 | 1.7 |
| Information and communication | 1.5 | 1.1 | 1.9 | -0.3 | -0.2 | 1.8 | 0.9 |
| Financial and insurance activities | 2.5 | 1.1 | 1.6 | 1.4 | -2.0 | -1.5 | 1.1 |
| Real estate activities | -0.2 | 0.7 | -0.2 | -0.5 | 0.8 | 0.3 | 0.4 |
| Business services | 1.8 | -0.7 | 0.2 | 0.2 | -0.2 | 0.4 | 0.1 |
| Public services, education, health | 1.9 | 0.7 | 1.4 | -0.5 | 0.9 | -0.7 | -0.2 |
| Other services | 7.2 | 0.4 | 1.7 | -2.8 | 2.2 | 0.2 | 1.3 |
| Gross value added, total | 0.6 | 0.3 | 0.7 | -0.6 | 0.3 | -0.2 | 0.1 |
