Lowered German Forecast - GDP Shrinks This Year

The German government is lowering its GDP forecast for this year and now expects Europe's largest economy to shrink by 0.2 percent compared to 2023.

Last year, the German economy also shrank, by 0.3 percent.

To find two consecutive years with a shrinking German economy, you have to go back to the years following German reunification in 1990.

In the government's forecast from the end of April, they expected a growth of 0.3 percent this year.

For next year, the German government expects a slow recovery in its revised forecast, with a GDP increase of 1.1 percent followed by a growth of 1.6 percent in 2026.