Economy: German economy to shrink at the end of 2024 - weak exports

Weak exports and production declines in the automotive and mechanical engineering sectors are weighing on the German economy. In the fourth quarter of 2024, gross domestic product shrank by 0.2 percent compared to the previous quarter, the Federal Statistical Office in Wiesbaden announced, confirming an initial estimate.

While the government and consumers spent more money at the end of the year, exports fell significantly by 2.2 percent compared to the previous quarter. "Exports last recorded a sharper decline in the second quarter of 2020," the statisticians wrote.

In addition, investments in equipment – ​​especially in machinery, devices and vehicles – shrank for the fifth time in a row, while investments in construction grew thanks to mild weather.

The economic downturn continues to hit German industry. In the manufacturing sector, economic output fell by 0.6 percent, the seventh quarter in a row. According to statisticians, there were particularly strong declines in production in the automotive and mechanical engineering sectors. Economic output also fell again in the crisis-ridden construction industry.

The figures show how great the pressure is on the future federal government to get the economy going again quickly. Business associations are calling for lower energy prices and taxes as well as reduced bureaucracy.

The German economy is in deep crisis. In 2024, gross domestic product shrank by 0.2 percent, the second year in a row with a decline. This is the longest recession in more than 20 years. The federal government and leading economists expect at best minimal growth in 2025.

.

© dpa-infocom, dpa:250225-930-386188/1