Germany's GDP declined by 0.2% in 2024, following a 0.3% contraction in 2023, in line with market expectations.
German economy shrinks by 0.2% in 2024
The manufacturing sector experienced a sharp downturn, with output falling by 3%, particularly in machinery and automotive industries. The construction sector also faced challenges, seeing a 3.8% decrease in gross value added due to high construction costs and interest rates, although civil engineering showed growth. The services sector grew by 0.8%, but performance varied across sub-sectors: trade, transport, and accommodation stagnated, while information and communication rose by 2.5%. Business services remained unchanged.
Further figures
Gross fixed capital formation dropped by 2.8%, notably in construction and machinery. Household consumption rose slightly by 0.3%, driven by higher spending on health and transport. Government consumption grew by 2.6%, largely due to increased social benefits. Foreign trade struggled, with exports falling by 0.8% and imports edging up by 0.2%.
