German Economy Shrinks by 0.2% in 2024, Marking Second Consecutive Year of Slowdown

The German economy contracted by 0.2% in 2024, marking the second consecutive year of economic decline, according to preliminary official figures released Wednesday. Chancellor Olaf Scholz's coalition government collapsed in November over disputes on how to revitalize the economy, leading to an early election on February 23. German exports shrank due to increased competition from China, and consumer spending fell in key areas despite rising disposable income, as reported by Ruth Brand, head of the statistics office. The economy is now only 0.3% larger than in 2019, with ongoing challenges including high energy prices and job cut announcements from major companies like Volkswagen.