The German economy is in recession and most likely will continued to shrink until the end of 2024, reported Ag. Bloomberg, citing Erik-Jan van Harn, an analyst at the Dutch bank Rabobank.
„There are no obvious signs of a change in the contractionary trend of the German economy. The best scenario at the moment is to reach the bottom,”, quotes the expert. Other economists polled by Bloomberg agree that the German economy is in a "moderate recession". According to their estimates, the GDP of the country in the third quarter of the year will decrease by 0.1%, continuing the trend of the second quarter. The agency notes that the reasons for the pessimistic forecasts are the labor shortage, the lack of supplies of Russian energy resources, the reduction of costs by the largest companies in the German industry, as well as the drop in demand for exports from the EU to China.
In 2023, Germany became the only G7 country whose economy shrank. Thus, in 2023, the decline in its economy is 0.3%. At the same time, for 2025, experts predict a slight increase in Germany's GDP – by 0.8%.
The German economy is going through a serious crisis. Earlier, leading economic institutions in Germany revised down their forecast for the country's economic growth in 2024. According to them, Germany's GDP will decrease by 0.1%. German GDP in the second quarter of 2024, taking into account price, seasonal and calendar adjustments, decreased by 0.1% compared to the first quarter of 2024. Earlier, the International Monetary Fund lowered its forecast for German economic growth in 2024 . by 0.3 percentage points to 0.2%.