German Economy Set to Shrink for 2nd Year Running

Gross domestic product is now predicted to shrink by 0.2 percent this year, slightly less than the 0.3 percent it shrank in 2023.

German Economy and Climate Minister Robert Habeck shows a cardboard with the development of nominal wages and real wages as well as inflation during a news conference of Germany's economy development in Berlin on Oct. 9, 2024. Markus Schreiber /AP Photo

Germany’s economy is on track to shrink for a second year running, Berlin said on Wednesday.

Gross domestic product (GDP) is now predicted to shrink by 0.2 percent this year, in stark contrast with the government’s prediction in April that it would grow by 0.3 percent.