As of the beginning of 2024, Germany's GDP decreased by 0.3%. The German economy has gone into the red for the first time since the crisis caused by the coronavirus pandemic. This is reported by Bild with reference to data from the Federal Statistical Office.
Thus, Germany's GDP in 2023 not only did not grow, but also decreased by 0.3%.
"The overall economic development of Germany stalled in 2023 in conditions that are still characterized as crisis," said the head of the statistical office.
The previous similar economic decline was in 2020 - minus 3.8%. This was followed by two years of growth - by 3.2% in 2021 and 1.9% in 2022. Before the coronavirus pandemic, a similar decline in production was observed during the global crisis of 2009.
In 2024, analysts expect moderate growth at best, although many assume that the downward trend in GDP for Germany will continue.
Among the reasons for the current economic downturn is high inflation, which is causing a decline in purchasing power and rising interest rates. Political uncertainty against this backdrop makes investors refrain from capital investments.
