Germany, Europe’s largest economy, saw its economy shrink for the second year in a row in 2024, based on preliminary official data published Wednesday, just weeks ahead of an election where the economy is the central focus, reports AP.
The Federal Statistical Office reported a 0.2% decline in gross domestic product last year, following a contraction in 2023. Ruth Brand, the office's head, stated that the economy is estimated to have shrunk by 0.1% in the fourth quarter compared to the preceding three months. However, this is a provisional estimate as complete economic data for December are still pending.
Asian stocks mixed ahead of US inflation data
Germany's economic struggles have been compounded by external disruptions and domestic challenges, including bureaucratic hurdles and a lack of skilled workers, with politicians divided over solutions.
The government led by Chancellor Olaf Scholz collapsed in November after Scholz dismissed his finance minister over disagreements on revitalising the economy, prompting an early election set for Feb. 23.
Asian shares mixed as Big Tech drops affect Wall Street
Candidates vying to form the next government have presented differing strategies to reinvigorate the economy.