Germany's GDP Growth Rate Last Year -0.2%... "Two Consecutive Years of Negative Growth"

Germany's Economic Growth Rate Expected to Remain at 0.2-0.4% This Year

Germany's gross domestic product (GDP) decreased by 0.2% compared to the previous year.

On the 15th (local time), the German Federal Statistical Office announced that last year's GDP growth rate was as such, marking a negative growth for two consecutive years. The economic growth rate for 2023 was -0.3%. This is the first time in 21 years since 2002-2003 that Germany's economic growth rate has recorded negative growth for two consecutive years.

Germany's economic growth rate was -4.1% in 2020, during the early stages of the COVID-19 pandemic, then rose to 3.7% the following year. However, it failed to maintain the recovery momentum, shrinking to 1.4% in 2022 and entering a prolonged recession.

Looking at this year's economic growth rate by sector, manufacturing (-3.0%) and construction (-3.8%) showed notable contractions. It is analyzed that a significant reduction in production in key areas such as machinery and automobiles, along with decreased residential gift construction due to high construction costs and high interest rates, contributed to this decline. Services (0.8%), information and communication (2.5%), and the public sector (1.6%) continued their growth for the second consecutive year.

The government fiscal deficit was recorded at 113 billion euros (169.9 trillion won), 5.5 billion euros (8.2 trillion won) more than in 2023. This amounts to about 2.6% of GDP, which is lower than the European Union (EU) threshold of 3.0%.

Experts predict that the German economy will not recover significantly this year either. The Bundesbank (German Central Bank) forecasts an economic growth rate of 0.2% this year, while private research institutes predict between 0.3% and 0.4%.