Q4 GDP at 0.2 QQ vs forecast of 0.0
Decline due mainly to falling private consumption
Economists reckon mild recession is likely

BERLIN, Jan 30 Reuters The German economy unexpectedly shrank in the fourth quarter, data showed on Monday, a sign that Europe39;s largest economy may be entering a muchpredicted recession, though likely a shallower one than originally feared.

Gross domestic product decreased 0.2 quarter on quarter in adjusted terms, the federal statistics office said. A Reuters poll of analysts had forecast the economy would stagnate.

In the previous quarter, the German economy grew by an upwardly revised 0.5 versus the previous three months.

A recession commonly defined as two successive quarters of contraction has become more likely, as many experts predict the economy will shrink in the first quarter of 2023 as well.

The winter months are turning out to be difficult although not quite as difficult as originally expected, said VP Bank chief economist Thomas Gitzel.

The severe crash of the German economy remains absent, but a slight recession is still on the cards.

German Economy Minister Robert Habeck said last week in the government39;s annual economic report that the economic crisis triggered by the Russian invasion of Ukraine was now manageable, though high energy prices and interest rate rises mean the government remains cautious.

The government has said the economic situation should improve from spring onwards, and last week revised up…