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The German economy shrank by 0.2% quarter-on-quarter in the three months to December 2024, confirming preliminary estimates and following a 0.1% expansion in the previous period. The downturn was primarily driven by a negative contribution from net trade, as exports plunged 2.2% (vs. -1.9% in Q3), while imports increased 0.5% (vs. 0.6%). Additionally, household consumption growth slowed to 0.1% (vs. 0.2%), and government spending rose 0.4%, down sharply from 1.5% in Q3. Meanwhile, fixed investments rebounded (0.4% vs. -0.5%), mainly due to a recovery in construction investment. On the production side, most industries declined, with notable contractions in agriculture, forestry, and fishing (-1%), as well as manufacturing (-0.6%). On a yearly basis, the economy contracted 0.2%, confirming initial estimates and marking the sixth consecutive quarter of decline.