BERLIN – According to preliminary official figures released Wednesday, the German economy, the largest in Europe, contracted for the second consecutive year in 2024. This data comes just weeks before an imminent election where the economy holds paramount importance.
The Federal Statistical Office disclosed that the gross domestic product shrunk by 0.2% in the past year following a similar decline in 2023. Ruth Brand, the head of the office, mentioned that an approximate 0.1% contraction is estimated for the fourth quarter compared to the preceding three-month period. However, this figure is a preliminary estimate due to the unavailability of hard economic data for December.
The challenges faced by the German economy stem from a combination of external shocks and internal issues, such as bureaucratic hurdles and a scarcity of skilled workforce. Politicians have been in disagreement regarding the appropriate measures required to address these economic woes.
Chancellor Olaf Scholz’s three-party coalition government collapsed in November when Scholz fired his finance minister in a dispute over how to revitalize the economy. That paved the way for an early election on Feb. 23.
Contenders to lead the next government have made contrasting proposals on how to inject new vigor into the economy.
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