The German government had forecast a 5.5% decline.
The first wave of the pandemic caused the worst quarterly drop in GDP on record, when output plummeted 9.8%.
After signs of recovery, a resurgence of the Covid-19 pandemic has seen economic recovery slow down again.
Germany s economy in 2020 suffered its biggest contraction since the 2009 financial crash, hit hard by the coronavirus pandemic, official data showed on Thursday.
Output shrank 5.0% year-on-year, as almost all economic sectors were markedly affected by the corona pandemic , federal statistics agency Destatis said.
However the data betters the government s own forecasts, which anticipated a decline of 5.5%.
The downturn comes after a 10-year growth period , Destatis said.
COVID vaccines likely effective against new variants, say health experts
As new variants of coronavirus prompt new public health measures, two German public health experts have told DW that vaccinations should still be effective if they can be administered in time.
Public health officials are hopeful a ramped-up vaccinations will combat fast-spreading COVID
At least three coronavirus variants circulating around the world right now are being blamed for fueling a global surge in COVID cases.
The latest variant was linked to Brazil after Japan s health ministry this week said it had detected a new variant in four travelers coming from Brazil s Amazonas state.
Germany battles one of the toughest pandemic stages onenewspage.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from onenewspage.com Daily Mail and Mail on Sunday newspapers.
Johnson & Johnson faces lag in Covid-19 vaccine production, NYT reports
From CNN Health s Jacqueline Howard
An investigational pharmacy technician holds a dose of the Johnson & Johnson Covid-19 vaccine before it is administered in a clinical trial in Aurora, Colorado, on December 15, 2020. Michael Ciaglo/Getty Images
The production pace of the Covid-19 vaccine being developed by drugmaker Johnson & Johnson s subsidiary Janssen appears to be behind schedule.
The New York Times reported on Wednesday that Operation Warp Speed s lead manufacturing adviser Dr. Carlo de Notaristefani acknowledged a delay, but said the company might be able to catch up with its original production goals by March. The vaccine is delivered as a one-dose shot could help ramp up vaccination efforts as the United States continues to fight a devastating pandemic.
German Health Minister Jens Spahn told German lawmakers Wednesday the nation is in one of the hardest phases of the COVID-19 pandemic, with infection rates high and a strained health care system, but an effective vaccine being delivered.
Spahn addressed the lower house of the German Parliament the Bundestag and defended the government choosing to wait almost two weeks to roll out its vaccine program, to coincide with the rest of the European Union.