Germany’s economy is shrinking

Germany is suffering a mild recession and output this year is expected to be flat. With a Gross Domestic Product (GDP) of €4.121 billion, Germany is Europe’ s largest economy


Germany GDP growth rate (%)

2017: Economy grows for eighth year in row

2020: Economy hit hard by coronavirus pandemic.
Exports drop by 9.9%, imports of goods and services by 8.6%

Feb 2022: Russia invades Ukraine

Aug 2022: Russia cuts off gas supply, driving prices to record levels

4 
3 		2.68				3.16
2 	2.23						1.81
1 			0.98	1.08
0	2016 	2017 	2018 	2019 	2020 	2021 	2022	2023 	2024
-1 								-0.30	-0.20
-2 
-3 
-4					-3.83

Q1: +0.2% 
Q2: -0.1% 
Q3: -0.1% 
Q4: +0.1%
 
Recession: Defined as two consecutive quarters of contraction


Olaf Scholz: Chancellor (left), presents agenda for tax breaks to 95% of taxpayers, investment support and boost in minimum wages from €12.41 to €15.
Plan approved by Social Democrats’ coalition partners – Greens and pro-business Free Democrats

Robert Habeck: Economy Minister (right) predicts growth will resume next year, projecting 1.1% in 2025 and 1.6% in 2026
   

Source: Deutsche Bundesebank, KPMG, Reuters, Politico 
Pictures: Getty Images 
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