German economy on the abyss: growth stagnation remains!

German economy on the abyss: growth stagnation remains!

Wiesbaden, Deutschland - Munich/Wiesbaden/Kiel, October 31, 2024. The German economy has barely avoided a recession! Ifo expert Klaus Wohlrabe comments on the latest figures from the "Federal Statistical Office": In the third quarter of 2024, there was a surprising increase in economic output by 0.2 percent. But be careful! The growth figures for the second quarter were corrected downwards - from minus 0.1 to minus 0.3 percent. The industry remains a problem child, and well -raven warns: "A trend reversal is not yet in sight." In the fourth quarter, there could be a slight revival, but the problems are deeply rooted.

Stagnation despite lighting views

The Kiel Institute for the World Economy (IFW Kiel) sees the situation even more skeptical. Dr. Nils Jannsen, the economic leader, explains: "The German economy does not come from the position." Economic performance is weak in historical and international comparison. The gross domestic product (GDP) is hardly above the level of 2019 and has been stagnating since the beginning of 2022. While other countries in the euro area have increased their GDP by more than 5 percent, Germany remains afterwards. The growth rate is weaker in the last quarters than in large economies such as France or Spain.

The structural problems of the German economy are alarming! Jannsen warns of a declining competitiveness. Industrial production falls trendy and the exports of goods are left behind the global trading dynamics. An economic recovery will not change the fact that Germany remains far behind its old growth path. The signs are on storm, and the economy is on the abyss!