Will the German economy shrink again in 2024 or will it be enough to break even?
On Wednesday, the Federal Statistical Office will present data on how the gross domestic product (GDP) developed for the year as a whole. The authority also publishes figures on the 2024 national deficit.
The German economy has not been able to move for a long time. After slight growth in the first quarter, GDP fell in the second quarter and then increased minimally in the third quarter. The federal government expects the economy to have shrunk slightly by 0.2 percent in 2024. It would be the second year of recession in a row after 2023.
German economy on the verge of recession
The German economy is under pressure from many sides. China has lost momentum as a growth driver on global markets, and the number of company bankruptcies is increasing domestically. At the same time, the export prospects for the industry are bleak. Key industries such as car manufacturing and chemicals are in crisis, as is housing construction. Consumers are unsettled and private consumption is not really getting going. At the same time, high energy prices and extensive bureaucracy are putting a strain on the location.
The prospects for the new year are not very promising. The economy is hoping for reforms after the federal election. However, under US President-elect Donald Trump, there is a threat of high tariffs on imports from Europe, which would particularly affect Germany as an export nation. (dpa)