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Germany Faces Economic Stagnation Amid Automotive Declines
(MENAFN) Germany’s Economy shrinks for the second consecutive year and is set to remain stagnant for the rest of 2024, grappling with ongoing economic challenges, Bloomberg reported.
A recent survey indicated that the nation’s economic activity has stalled in the three months ending in September, with declines greater than expected. Economists have begun revising their forecasts downward, predicting potential prolonged stagnation or even a new downturn.
Martin Belchev, an analyst at FrontierView, mentions that while a mild recovery may be anticipated towards the end of 2024 and into 2025, it is expected to be largely cyclical, with significant risks lingering.
The automotive sector is particularly concerning, as the four leading German car manufacturers are experiencing double-digit sales declines, which could further hinder overall economic growth.
Germany's central bank indicated in its monthly report that the country might already be in a recession.
The Bundesbank stated that gross domestic product (GDP) "could stagnate or decline slightly again" in the third quarter, following a contraction of 0.1 percent in the second quarter.
A recent survey indicated that the nation’s economic activity has stalled in the three months ending in September, with declines greater than expected. Economists have begun revising their forecasts downward, predicting potential prolonged stagnation or even a new downturn.
Martin Belchev, an analyst at FrontierView, mentions that while a mild recovery may be anticipated towards the end of 2024 and into 2025, it is expected to be largely cyclical, with significant risks lingering.
The automotive sector is particularly concerning, as the four leading German car manufacturers are experiencing double-digit sales declines, which could further hinder overall economic growth.
Germany's central bank indicated in its monthly report that the country might already be in a recession.
The Bundesbank stated that gross domestic product (GDP) "could stagnate or decline slightly again" in the third quarter, following a contraction of 0.1 percent in the second quarter.
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