Sharjah24 - AFP: According to official figures released on Friday, the German economy expanded by 1.9 percent in 2022, above expectations, as government relief measures protected Europe's largest exporter from an energy crisis brought on by the conflict in Ukraine.
The expansion was slower than the 2.6-percent growth in 2021, with GDP "stagnating" in the fourth quarter as inflation surged following Russia's invasion of Ukraine, statistics authority Destatis said.
But it was better than the 1.8 percent forecast by analysts, as government interventions and a mild winter helped Germany weather the higher energy costs triggered by Moscow slashing crucial gas supplies.
Ruth Brand, president of Destatis, outlined the challenges faced by Europe's biggest economy, from "extreme energy price increases" to supply chain bottlenecks, rising food prices and a shortage of skilled workers.
But she added: "Despite these difficult conditions, the German economy held up well overall in 2022."
Carsten Brzeski, head of macroeconomics at ING, also said the data "shows that for the entire year 2022, the catch-up effect after the end of lockdowns, both for consumption and production, outweighed the economic fallout from the war in Ukraine.
"In the final months of the year, fiscal support also cushioned the downswing."
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