German economy shows no growth in Q2 2024
Date
8/27/2024 4:10:14 AM
(MENAFN) The German Economy showed no growth in the second quarter of the year, with a 0 percent increase compared to the same period last year. This outcome was better than anticipated, as forecasts had predicted a slight contraction of 0.1 percent. The federal statistical authority had earlier projected a 0.1 percent decrease in economic output, but the actual result indicated that the economy managed to stabilize rather than contract.
On a quarterly basis, Germany's GDP decreased by 0.1 percent for the April-June period, following a small increase in the previous quarter. Ruth Brand, head of the statistical office, commented that despite the modest uptick in the prior quarter, the German economy experienced a slowdown during the spring months. This decline reflects the ongoing challenges facing the economy.
Germany has seen annual declines in GDP for the past five quarters, signaling a period of persistent economic difficulties. The International Monetary Fund (IMF) has projected a slight recovery, forecasting a 0.2 percent increase in Germany's economy for 2024. This is expected to be followed by a more robust growth rate of 1.3 percent in 2025, as the economy rebounds from a predicted contraction of 0.2 percent in 2023.
Overall, while the German economy managed to avoid a contraction in the second quarter, the broader trend of economic challenges persists. The IMF’s forecast suggests a cautious optimism for the future, with anticipated improvements in economic growth over the next two years.
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