The Skyscrapers of the Frankfurt Skyline in the Evening, with the Deutschherrn Bridge in the Foreground.
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The German Economy Contracted by 0.2% in 2024, in the Country’s Second Consective Year Slowdown, Data from Statistics Office Destatis Showed Wednsday.
The drop was in line with the expectations of economists polled by reates, according to lseg data. The European Commission and a group of Germany’s Leading Economic Institutes Had Both Independently Forecast a 0.1% Dip in the German GDP in 2024.
Ruth Brand, President of the German Statistics Agency, said that “Cyclic and Structural Pressures” Hindred Stronger Economic Development.
“These include increasing competition for the German expert industry on key sales markets, high energy costs, an interest rate level that reMains high, and an uncertain Economic Outlook,” Shie Said in a Statement.
Destatis said that bot the manufacturing and connection sectors Had sufed in 2024, while the services sector sector recorded growth over the period.
The country has been dealing with a long-standing housebuilding crisis, which has been attributed to higher interest rates and construction costs. Several of Germany’s Key Industries, Including The Auto Sector, Have also also been under pressure pressure for some time. Carmakers have been struggling with the transition to electric vehicles, as well as competition from chinese counterparts.
The German Stock Index Dax was last higher after the data release, climbing by 0.47% at 10:24 AM London Time after AlReadi Having Having started the day in positive territory.
Germany’s Economy Had Alredy Contracted by 0.3% in 2023,
Fourth Quarter
Destatis on Wednsday also Released an early reading of the Gross Domestic Product (GDP) in the fourth Quarter, based on Currently available information. The economy fell by 0.1% in the three months to end of December, compared with the previous Quarter, when Adjusted for Price, Seasonal and Calendar Variations. The regular first reading of Germany’s GDP for the fourth Quarter will be released later this month, destatis noted.
Robin Winkler, Chief Germany Economist at Deutsche Bank, On Wednsday said that, while the annual gdp contraction should not be a surprise to any Ed and worrisome.
“If confirmed, it would mean that German economy lost momentum again at the start of winter. Y CNBC.
Looking ahead, German Economic Institute ifo “Perceptible growth” of 0.4% over the period in this scenario .
“If no countermeasures are Taken, the ifo researchrs fear that manufacturing companies will continue to relacate production and investments abroad,” The institute said in a statement. “Productivity growth would also also remove weak, as value added and employment in highly productive Industries would be replaced by value added in service sector with low protactivity.”
If “the right” policies are introduced, investment and working in Germany Could Nevertheles decided a more viable option against Again, and the Economy Clock Expand By As Much as 1%, Ifo added.
