2024-11-22 13:29:09
Economy
Business

Germany's Economic Stagnation and Challenges Ahead

Image courtesy of : AFP (JOHN MACDOUGALL)

The German economy narrowly avoided a technical recession in the third quarter, growing by a mere 0.1%. This slight increase in GDP was primarily supported by consumer spending, with private consumption rising by 0.3% and government spending by 0.4%. However, investments fell, particularly in equipment and construction, indicating a continued struggle in these sectors.

The international trade balance also painted a concerning picture, with exports declining by 1.9% while imports rose slightly. Notably, exports to key markets like the USA and China fell significantly, reflecting broader economic challenges and geopolitical tensions. The overall international comparison shows Germany lagging, with the EU averaging a 0.3% GDP growth, and countries like Spain and France doing better.

Economic experts express concern over Germany's stagnation, pointing out the minimal growth in consumer spending and weak investment levels. The slight GDP increase in the third quarter is not seen as a turning point, with predictions of further economic contraction in 2024. The potential for a "winter recession" looms large, exacerbated by structural issues and political uncertainties.

The outlook remains grim, with calls for the incoming government to implement strategic economic reforms. The need for a shift in economic policy is urgent, especially given the challenges in key industries such as chemicals and automotive, which face crises and potential job cuts. As external demand wanes, particularly from major partners like the USA and China, Germany's economic resilience is being tested. The focus now turns to policy measures that could bolster growth and steer the country away from prolonged stagnation.

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22. November 2024 um 08:41

0.1 Percent in the Third Quarter: GDP Growth is Weaker Than Expected - n-tv.de

Economy
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German GDP growth in the 3rd quarter was only 0.1%; Consumer sentiment and government spending are supporting the economy; Exports decline significantly; Recession risk remains; Bundesbank expects a weak phase; Key industries like chemicals and automotive are in crisis; Ford plans to cut 2,900 jobs, Volkswagen threatens plant closures; Falling ECB key interest rates could provide impetus; Uncertainty due to Trump's victory and the traffic light coalition break-up in Germany; The federal govern..
DER SPIEGEL
22. November 2024 um 09:27

Economy: Economists Expect Painfully Long Stagnation Phase in Germany - DER SPIEGEL

Economy
Finance
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German GDP growth in 2023 is only 0.7% - the smallest increase in the Eurozone; consumer spending and government consumption support the economy, but investments and exports are declining; uncertainty due to US politics could delay recovery until 2024/25.
Tagesschau - Wirtschaft und Börsen-Nachrichten
22. November 2024 um 09:41

Statistical Office Revises Estimate Germany's Economy Stagnates

Economy
Statistical Office revises estimate: Germany's economy grows only minimally by 0.1% in the 3rd quarter; recession narrowly avoided thanks to consumption; investments declining; exports falling, imports rising; bleak forecasts for 2025; German industry under massive pressure with declining production; hopes rest on the ECB's loose monetary policy.
EuroNews
22. November 2024 um 10:25

Modest growth in the German economy helps it avoid a recession

Economy
Politics
Finance
Germany's Q3 GDP rose 0.1%, avoiding recession. Household consumption grew, but government, manufacturing, net trade declined. PMI showed 5-month business activity fall, manufacturing/services contraction. France's business, manufacturing, services also contracted. Germany's GDP fell 0.3% year-over-year, price and calendar adjusted.
presseportal
22. November 2024 um 11:26

Investitionen eingebrochen – gemeinsam dagegenhalten

Wirtschaft
Finanzen
Politik
Hauptgeschäftsführer Tim-Oliver Müller des Hauptverbands der Deutschen Bauindustrie kommentiert schwache Investitions- und Bauinvestitionszahlen des Statistischen Bundesamts aus VGR-Meldung. Reale Bauinvestitionen im 3. Quartal um 0,3% unter Vorquartal, im Vorjahresvergleich um 2,6% zurück. Wohnungsbau um 4,2% eingebrochen. Trotz Bundestagswahl müssen Parteien gemeinsam gegen diese Entwicklung halten, um Infrastruktur, Wohnraum und wirtschaftliche Erholung des Standorts Deutschland zu sichern...
CW

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