German GDP, fourth quarter 2024

The German economy has reduced 0.2 % over a quarter of a quarter in the three months ending in December, according to the initial data issued by the Destatis Statistics Office on Thursday.

The number is modified for seasonal price, evaluation and changes.

Reuters analysts expected 0.1 % decrease in GDP.

Disatis said that the expenses of home consumption and the government increased, but the exports were “much less” than they were in the previous quarter.

“After a year, it was characterized by economic and structural challenges, the German economy ended in 2024 in the negative lands,” he added.

“There was now a high possibility that this recession would lead to stagnation in the winter.”

He said in a memorandum on Thursday: “It seems that Germany issues are currently focused on making the country, but this may change.

“Given the importance of industry for the entire economy, indulging in other sectors – whether through real feelings or economic channels – actually happens.”

Brzeski pointed out that the decisive industry was also not appointed to “the great recovery” with the continuing issues related to stock, arrangement and definitions on exports to the United States looming on the horizon.

The numbers are compared to Thursday, an increase of 0.1 % of the country’s gross domestic product in the third quarter of last year. Germany’s economic performance has always been slow, as the readings of GDP mostly hovering around the flat line in the past two years. However, the economy was able to avoid artistic recession.

On an annual basis, The German economy contracted In both 2023 and 2024, by 0.3 % and 0.2 %, respectively.

Some comfort is expected in 2025, with German government on Wednesday It reveals its expectations for growth by 0.3 % for this year – a remarkable review of its previous estimate is still 1.1 %.

“The diagnosis is dangerous,” Robert Habik, Minister of Economy and Climate, said at a press conference on Wednesday, according to the translation of CNBC.

He added that the German economy was stagnant for a long time. He referred to both internal and global political uncertainty as factors that lead to a reduction in expectations, and added that the outgoing government was unable to implement the entire growth plans because its mandate period ended early.

Federal elections are scheduled to be held in Germany on February 23, which was originally planned due to the disintegration of the ruling coalition in the country late last year.

Habik also said that there are structural issues weighing the German economy, Echo comment It was made by Finance Minister Juerg Cookis last week.

“The structural weaknesses of our economy must be addressed at all,” CNBC told CNBC. “It is really important to start on the path of economic growth.”