Germany’s economy shrinks again in 2024

Germany's Federal Statistical Office says the GDP contracted by 0.2 per cent in 2024 following a decline in 2023

Berlin: The German economy, Europe’s biggest, shrank for the second consecutive year in 2024, according to preliminary official figures released Wednesday weeks before an election in which the economy is the top issue.

The Federal Statistical Office said that gross domestic product contracted by 0.2 per cent last year following a decline in 2023.

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The German economy has been battered by external shocks and homegrown problems, including red tape and a shortage of skilled labour, and politicians have been at odds over how to fix it.

Chancellor Olaf Scholz’s three-party coalition government collapsed in November when Scholz fired his finance minister in a dispute over how to revitalise the economy. That paved the way for an early election on February 23.

Contenders to lead the next government have made contrasting proposals on how to inject new vigour into the economy.