MADRID, 24 Feb. (EUROPA PRESS) -

The German economy contracted more than expected in the last quarter of 2022 and fell by 0.4%, doubling the previous estimate from the end of January, as reported by the Federal Statistical Office (Destatis).

The government office explains that the fall is justified by the decline in capital investment and private consumption, while public spending contributed to boosting global demand.

However, the labor market grew by 1.1%, creating 492,000 jobs compared to the previous year. Thus, the number of people employed was 45.9 million people, a record figure.

However, the number of hours worked per capita fell by 1.5% year-on-year, something that Destatis attributes to a greater use of sick leave. In addition, labor productivity also contracted by 0.8%.

If the forecasts of the economists consulted by 'Bloomberg', who forecast a new drop in GDP in the first quarter of 2023, are confirmed, the largest European economy would be imminently headed for a technical recession.