German Economy Shrinks for Second Consecutive Year, Deepening Recession

The 2024 GDP contracted by 0.2%, marking the longest stagnation phase since the early 2000s, with no immediate recovery in sight.

Germany's GDP decreased by 0.2% in 2024, following a 0.3% contraction in 2023, making it the longest recession in over two decades.
The country's economic growth since 2019 has been a mere 0.3%, significantly lagging behind the EU's 5.3%, the US's 11.4%, and China's 25.8%.
Key industries, including automotive and machinery manufacturing, saw major declines, with industrial output shrinking by 3% in 2024.
High energy costs, geopolitical tensions, and structural challenges, such as a lack of competitiveness and slow infrastructure development, continue to weigh on the economy.
Consumer confidence remains low despite rising real wages, with the savings rate increasing to 11.6% as households and businesses hold back on spending and investment.