Germany's economy contracted by 0.2% last year, following a 0.3% decline in 2023, according to the latest data released.
"According to initial estimates from the Federal Statistical Office (Destatis), GDP in terms of purchasing power decreased by 0.2% in 2024 compared to the previous year. The decline in economic activity in Germany was also 0.2% after adjusting for calendar effects," the Destatis press release stated.
"Both cyclical and structural pressures hindered better economic performance in 2024," said Ruth Brand in a press conference in Berlin regarding Germany's GDP for 2024.
"These pressures include increasing competition for Germany's export industry in key markets, high energy costs, high interest rates, and uncertain economic prospects. Against this backdrop, the German economy contracted again in 2024," Brand added.
After adjusting for price effects, the overall value added of the economy decreased by 0.4% in 2024, with significant variations in the performance of individual economic sectors.
In the construction industry, the decline in added value year-on-year in 2024, with a -3.8% drop, was even more pronounced. In particular, with high construction prices and interest rates remaining elevated, fewer residential buildings were constructed.
