The GDP in Germany is 0.2% in Germany 2024, which is the second year in a row that is witnessing Economic shrinkage In the country, in the longest economic stagnation of the largest economy in Europe for more than 20 years, according to the data of the Federal Statistical Office.
The German government and senior economists expect slight growth at the best case in 2025.
Weak exports and the decline in production in the auto and machinery manufacturers in Germany caused the German economy to shrink at the end of 2024.
The last quarter
The Federal Statistical Office in Wiesbaden also announced today, Tuesday – affirming its previous initial estimates – that the GDP of Germany has shrunk in the last quarter of 2024 by 0.2% compared to the third quarter.
In the third quarter of 2024, German GDP grew 0.1% on a quarterly basis.
While the government and consumers spent more money at the end of the year, exports fell dramatically by 2.2% compared to the previous quarter, and the office statement stated: “Exports recorded a more severe decrease in the second quarter of 2020.”
In addition, investments in equipment – especially machines, devices and vehicles – decreased for the fifth quarter in a row, while the investments in construction have grown thanks to the moderate weather.
https://www.youtube.com/watch?v=ny0xzetopu
The manufacturing sector
The economic slowdown continued to influence the German industry. In the manufacturing sector, the economic product decreased by 0.6% for the seventh quarter in a row.
Statistics experts reported that production in the auto and machinery sectors declined significantly, and the economic product decreased again in the stalled construction sector.
The numbers show the extent of pressure on the future German government to stimulate the economy quickly again, and demand economic federations to reduce energy and taxes, as well as limit bureaucracy.
There is an impact caused by the growing competition from abroad, increased energy costs, high interest rates, and the blurring of the German economy prospects, which shrinkled in 2024 for the second year in a row.
