Frankfurt horizon in dusk on November.
Helmut Frek Photo alliance Gety pictures
The German economy decreased by 0.2 % over a quarter of a quarter in the three months ending in December, according to the initial data issued by the Destatis Statistics Office on Thursday.
The number is modified for seasonal price, evaluation and changes.
Reuters analysts expected 0.1 % decrease in GDP.
The first first reading of GDP in Germany, based on the data available at the time, showed 0.1 % GDP when modified for seasonal changes and evaluation in the three months until the end of December.
The numbers are compared to Thursday, an increase of 0.1 % of the country’s gross domestic product in the third quarter of last year. Germany’s economic performance has always been slow, as the readings of GDP mostly hovering around the flat line in the past two years. However, the economy was able to avoid artistic recession.
On an annual basis, the German economy contracted in 2023 and 2024, by 0.3 % and 0.2 %, respectively.
It is expected that some comfort will be in 2025, as the German government revealed on Wednesday its expectations by 0.3 % for this year – a significant decrease in its previous estimate is still 1.1 %.
“The diagnosis is dangerous,” Robert Habik, Minister of Economy and Climate, said at a press conference on Wednesday, according to the translation of CNBC.
He added that the German economy was stagnant for a long time. He referred to both internal and global political uncertainty as factors that lead to a reduction in expectations, and added that the outgoing government was unable to implement the entire growth plans because its mandate period ended early.
Federal elections are scheduled to be held in Germany on February 23, which was originally planned due to the disintegration of the ruling coalition in the country late last year.
Habik also said that there are structural issues weighing the German economy, repeating the comment made by Finance Minister Juerg Cookis last week.
“The structural weaknesses of our economy must be addressed at all,” CNBC told CNBC. “It is really important to start on the path of economic growth.”
This is an urgent news story, please check again for updates.
