Germany’s economy shrank for second consecutive year in 2024, figures show

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Germany’s Economy Shrank For Second Consecutive Year In 2024, Figures Show
Frankfurt skyline by night, © Copyright 2024 The Associated Press. All rights reserved
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By AP Reporters

The German economy shrank for the second consecutive year in 2024, according to preliminary official figures.

The stats come just weeks before an election largely focused on the economy.

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The Federal Statistical Office said that gross domestic product contracted by 0.2% in Europe’s largest economy last year following a decline in 2023.

The head of the office, Ruth Brand, said that it is believed to have contracted by 0.1% in the fourth quarter compared with the previous three-month period, but that is a rough initial estimate as hard economic data for December have not been released yet.


German Chancellor Olaf Scholz
German Chancellor Olaf Scholz’s three-party coalition government collapsed in November (Lehtikuva via AP)

The German economy has been battered by external shocks and homegrown problems, including red tape and a shortage of skilled labour, and politicians have been at odds over how to fix it.

Chancellor Olaf Scholz’s three-party coalition government collapsed in November when Mr Scholz sacked his finance minister in a dispute over how to revitalise the economy. That paved the way for an early election on February 23.

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Contenders to lead the next government have made contrasting proposals on how to inject new vigour into the economy.

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