Germany's Economic Downturn: A Third Year of Contraction
The German economy is forecasted to shrink by 0.3% in 2024, marking the third consecutive year of contraction. Factors such as export challenges and U.S. tariffs contribute to this downturn, despite a stronger-than-expected first quarter. A survey indicates widespread concern among businesses about future export declines.
Germany is bracing for a 0.3% economic contraction this year, its third in a row, according to the German Chamber of Commerce and Industry (DIHK), signaling an unprecedented post-war slowdown.
The recession risks remain, yet a stronger-than-expected first quarter, driven by export and industrial tactics to dodge U.S. tariffs, offers a glimmer of hope.
Germany, notably impacted by tariffs due to its export-heavy economy, saw its largest trade partner in 2024 being the U.S., with trade valued at 253 billion euros. The DIHK projects a 2.5% export decline in 2025. A survey highlights pessimism with 29% of firms expecting export falls.
(With inputs from agencies.)
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