German Economy Faces Longest Recession in Over Two Decades

Shrinking exports, industrial stagnation, and rising deficits challenge the incoming government as economic pressures mount.

Germany's GDP fell by 0.2% in the fourth quarter of 2024, marking the second consecutive year of economic contraction.
Weak exports, down 2.2% from the previous quarter, and a struggling manufacturing sector were key drivers of the downturn.
The country faces its longest recession in over 20 years, with experts predicting minimal growth or further contraction in 2025.
Rising deficits, despite record government revenues, highlight fiscal challenges, with increased spending on social services and higher borrowing costs.
Calls for reform include reducing bureaucracy, revisiting the debt brake policy, and boosting infrastructure investment to stabilize the economy.