Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Germany's economy shrank for the second consecutive year in 2024

Preliminary official figures show that the German economy shrank for the second consecutive year in 2024

Via AP news wire
Wednesday 15 January 2025 09:14 GMT

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The German economy, Europe's biggest, shrank for the second consecutive year in 2024, according to preliminary official figures released Wednesday weeks before an election in which the economy is the top issue.

The Federal Statistical Office said that gross domestic product contracted by 0.2% last year following a decline in 2023. The head of the office, Ruth Brand, said that it's believed to have shrunk 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 haven't been released yet.

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

Chancellor Olaf Scholz's three-party coalition government collapsed in November when Scholz fired his finance minister in a dispute over how to revitalize the economy. That paved the way for an early election on Feb. 23.

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

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in