German Economy Contracts Again as Exports Decline

Germany's GDP shrank by 0.2% in Q4 2024, marking the second consecutive year of economic contraction with limited signs of recovery in 2025.

Germany's economy contracted by 0.2% in Q4 2024, a sharper decline than the initially estimated 0.1%, driven by weak exports despite increased consumer and government spending.
The German GDP also shrank by 0.2% for the entire year of 2024, following a 0.3% contraction in 2023, marking the longest stagnation phase since World War II.
Economic forecasts for 2025 remain bleak, with the German government lowering its growth projection to 0.3%, down from an earlier estimate of 1.1%.
Key challenges include declining exports, high energy costs, bureaucratic hurdles, and ongoing uncertainty tied to U.S. trade policies under President Trump.
Germany's economic performance lags behind other major Eurozone economies, with France growing by 1.1% and Spain by 3.2% in 2024.