German economy shrinks for second consecutive year

The German economy shrunk for the second year in a row, official figures released Wednesday showed, in a sign of the country’s protracted economic difficulties as it heads into a snap election next month.

GDP fell by 0.2% in 2024, partly owing to marked declines in manufacturing and construction output.

″Cyclical and structural burdens stood in the way of better economic development in 2024,″ Ruth Brand, president of the Federal Statistics Office, said. “These include increasing competition for the German export industry on key sales markets, high energy costs, an interest rate level that remains high, and an uncertain economic outlook.”