The most powerful economy in the EU has contracted for two consecutive years.

The German economy contracted in 2024 for the second consecutive year, indicating a serious decline in the economy of the largest country in Europe. According to Reuters, Germany's economy shrank by 0.2% over the entire year as economists predicted, and by 0.1% in the last quarter, the Federal Statistical Office reported. This suggests slight signs of economic weakening.

In 2023, the German economy decreased by 0.3%. This is already the second consecutive year of decline, the last time such a situation occurred was in the early 2000s.

Germany has transformed from the leading locomotive of Europe into one of the worst countries in the eurozone, being the only major economy that shrank last year.

Concerns over how to save the largest European economy led to the collapse of Chancellor Olaf Scholz's long-standing coalition parties last year, and this economy is a focal point for German voters.

The export-oriented German economy is suffering due to weak global demand and competition, especially from China. Exports fell by 0.8% in 2024 compared to the previous year.

Consumer spending increased by 0.3% in 2024 due to decreasing inflation, rising wages, and improving consumers' purchasing power.

The government recorded a budget deficit of 113 billion euros ($116.44 billion), which is 5.5 billion euros more than in 2023. The general government deficit in 2024 stood at 2.6% of GDP, remaining at the same level as in 2023.