The German economy experienced its second consecutive year of economic recession in 2024, marked mainly by the crisis of the industrial sector and the export model.

A few weeks before the legislative elections, scheduled for February 23, the European country is stagnating, with a contraction of the Gross Domestic Product (GDP) of 0.2% in 2024, according to estimates published on Wednesday, January 15, by the Destatis institute.

In 2023, Germany’s GDP had already contracted by 0.3 % and in the last quarter of 2024, the indicator was 0.1% compared to the previous quarter. Although the International Monetary Fund’s estimates are slightly positive, the Destatis institute has reflected that “German exports, a historical pillar of the country’s economic success, fell despite the global increase in world trade in 2024.”

Ruth Brand, president of the organization, said in a press conference that last year Germany faced strong cyclical and structural pressures, with “greater competition for the German export industry in key markets, high energy costs, interest rates that remain high, and an uncertain economic outlook.”

The crisis affects the automotive, investment and services sectors, so analysts do not foresee a quick recovery in 2025, which could become the third consecutive year of recession.

M.Pino

Source: swissinfo

(Reference image source: Rasmus Gundorff Sæderup on Unsplash)

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