German Government Anticipates 0.2% Economic Contraction This Year, Reports Sueddeutsche via Reuters

Germany’s economy ministry is set to revise its 2024 economic growth forecast, projecting a contraction of 0.2%, as reported by the Sueddeutsche Zeitung. This announcement is anticipated to be made on Wednesday and follows a previous government estimate of 0.3% growth this year, after experiencing a 0.3% decline in 2023.

In a recent update, Germany’s leading economic institutes also adjusted their 2024 forecast, predicting a decline of 0.1%.

The economy ministry, led by Robert Habeck from the Green party, is expected to provide a growth forecast for 2025 at 1.1%, an increase from the prior estimate of 1%, and a projection of 1.6% growth for 2026. These projections are based on a series of government initiatives aimed at boosting economic activity.