On January 15, the German Federal Statistical Office (Destatis) announced that the country's gross domestic product (GDP) will decrease by 0.2% in 2024.
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| Germany has been struggling with a cost of living crisis for the past few years. (Source: Shutterstock/esfera) |
This is the second consecutive year of negative growth for Europe's largest economy . Previously, in 2023, the German economy shrank by 0.3%.
Preliminary statistics for the fourth quarter of 2024 also show that the country's economy contracted by 0.1% compared to the third quarter of 2024. Europe's economic powerhouse is struggling with a cost-of-living crisis and falling export demand.
Germany has struggled with a cost-of-living crisis in recent years, partly due to rising energy prices linked to the Russia-Ukraine conflict.
Once a major buyer of cheap Russian gas, Berlin has struggled to find new supplies after Russia cut off energy supplies.
Conflict, along with climate change and other factors in international supply chains, also contribute to rising inflation and costs for essential items like groceries and toiletries.
Inflation has become a global phenomenon, but it has hit Germany particularly hard. And for an economy as dependent on exports as Berlin, falling demand for its products is a decisive factor in the economic impact.
The flood of cheap electric cars imported from China has reduced demand for German cars.
In addition, the country is also facing aging infrastructure and sluggish competitiveness in industry and technology.
Source: https://baoquocte.vn/hai-nam-tang-truong-am-lien-tiep-duc-dang-phai-doi-mat-voi-nhung-hon-da-tang-nao-301081.html
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