Germany Enters Recession Amid Strikes and Net Zero Transition Challenges

The Bundesbank forecasts a bleak start to 2024, with economic output expected to decline due to strikes, a property slump, and uncertainties over climate policies.

Germany's central bank, the Bundesbank, warns of a recession as the country faces strikes, a housing market slump, and challenges in transitioning to net zero.
Recent strikes, including those by farmers and train drivers, have significantly disrupted the country's infrastructure and economic activity.
The German economy contracted in the last quarter of 2023, marking a concerning trend for Europe's largest economy.
High energy costs, weak demand from abroad, and increased borrowing costs are among the factors contributing to the economic downturn.
Despite the challenges, the Bundesbank does not anticipate a widespread and lasting recession, citing signs of resilience such as stable labor markets and declining inflation.