09/10/2024 – 11:10
Germany’s economy is expected to contract by 0.2% in 2024, the German Economy Ministry said on Wednesday, 9th, becoming the only G7 country to record a drop in Gross Domestic Product (GDP) this year. , as also occurred in 2023.
The government cut its previous 0.3% growth forecast for this year as the expected recovery for the second half of the year failed to materialize.
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Germany’s economy was already the weakest-performing economy among its large eurozone peers and other G7 countries last year, with a 0.3% decline in GDP.
If the economy shrinks for a second year in a row, which last happened in 2002 and 2003 when the export and manufacturing sectors struggled, Germany will be the only G7 economy contracting, according to the latest Monetary Fund projections. International (IMF).
Germany’s economy suffered a slump in the second quarter, sparking fears of a possible recession, which is defined as two consecutive quarters of contraction.
The economy has not grown strongly since 2018 due to its structural problems and geopolitical challenges, German Economy Minister Robert Habeck said in his forecast presentation.
Growth dynamics should gradually recover again, the ministry said, expecting growth of 1.1% for 2025, compared with 1.0% previously. For the first time, the government included a forecast for 2026, when Germany’s economy is expected to expand by 1.6%.
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