Germany's Economy Contracts in Q4 2024

Data released by Germany's Federal Statistical Office on February 25 showed that after price, seasonal, and working - day adjustments, Germany's gross domestic product (GDP) declined by 0.2% quarter - on - quarter in the fourth quarter of 2024. Previously, the German economy had grown by 0.1% quarter - on - quarter in the third quarter of last year.

A press release issued by the Federal Statistical Office on the same day stated that Germany's exports decreased by 2.2% quarter - on - quarter in the fourth quarter of last year, the largest decline since the second quarter of 2020, while imports increased by 0.5% quarter - on - quarter. In addition, affected by a significant drop in output in the machinery and equipment and automotive industries, Germany's manufacturing sector shrank by 0.6% in the fourth quarter of last year, marking the seventh consecutive quarter of quarter - on - quarter decline. In terms of consumption, both public and private consumption increased slightly quarter - on - quarter.

The data also showed that after price adjustments, Germany's economy declined by 0.4% year - on - year in the fourth quarter of last year.

In 2024, Germany's economy actually declined by 0.2% compared with the previous year, marking the second consecutive year of negative growth.