Germany’s Economy Slows Down for Second Consecutive Year
A Challenging Year Ahead
Germany’s economy has taken a hit, contracting by 0.2% in 2024, marking the country’s second consecutive yearly slowdown. This decline is in line with economists’ expectations and follows a 0.3% contraction in 2023.
Cyclical and Structural Pressures Weigh Heavy
Ruth Brand, president of the German statistics agency, attributes the sluggish growth to “cyclical and structural pressures.” These include intense competition in key export markets, high energy costs, elevated interest rates, and an uncertain economic outlook.
Fourth Quarter GDP Takes a Dip
According to an early reading of the gross domestic product (GDP) in the fourth quarter, the economy fell by 0.1% in the three months to the end of December, compared to the previous quarter. This decline is adjusted for price, seasonal, and calendar variations.
Economic Forecast Remains Uncertain
The European Commission and leading German economic institutes had predicted a 0.1% dip in Germany’s GDP in 2024. While the actual contraction is slightly higher, it’s clear that the country’s economy is facing significant challenges.
What’s Next?
As the German economy navigates these uncertain times, it’s essential to stay informed about the latest developments. Check back for updates on this breaking news story, and sign up for free newsletters to stay ahead of the curve.
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