Germany set for 0.0% GDP growth in 2024, OECD forcasts

Germany’s GDP is expected to stagnate at 0.0 per cent growth in 2024, recovering from a -0.3 per cent contraction in 2023, according to the OECD’s latest Economic Outlook released on Wednesday.

The economy is expected to grow by 0.7 per cent in 2025 and 1.2 per cent in 2026.

The economy showed a slight rebound in the third quarter, driven by consumption, but high uncertainty about green transition measures is impacting confidence.

Industrial production fell 4.6 per cent in September year-on-year, though manufacturing orders rose by 4.2 per cent. Inflation increased to 2.4 per cent in October, up from 1.8 per cent in September, with core inflation at 3.3 per cent.

Real wages rose by 5.1 per cent in the third quarter, supporting retail sales.

Inflation is projected to ease to 2.4 per cent in 2024, then 2.0 per cent in 2025, and 1.9 per cent in 2026.

Attribution: OECD

Subediting: Y.Yasser