Germany’s economy likely to contract in ’24 

Germany’s economy is projected to contract by 0.2 per cent in 2024, according to the country’s economy ministry, confirming earlier reports by the Sueddeutsche Zeitung. The revised forecast marks a significant downgrade from the previous prediction of 0.3 per cent growth this year.

This will be the second consecutive year of economic contraction for Europe’s largest economy, which saw a 0.3 per cent decline in GDP last year, making it the weakest performer among its major eurozone peers.

Leading German economic institutes, including Ifo, DIW, IWH, IfW, and RWI recently adjusted their forecasts, predicting a 0.1 per cent contraction for 2024.

The economy ministry will publish its detailed autumn projections on Wednesday, incorporating the combined estimates from these institutes. A ministry spokesperson emphasised that the assessment will offer a comprehensive view of the economic situation, beyond just a few headline numbers.

Attribution: Reuters

Subediting: M. S. Salama