• 21/02/2024 02:30

The German economy showed one of the worst results in 23 years

Germany has experienced a difficult year and the situation will not improve in 2024. Bloomberg writes about this.

 The German economy showed one of the worst results in 23 years

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Weak global demand, energy and infrastructure problems contributed to Germany showing one of the worst economic results in the 21st century for 2023. Even if the economy begins to grow again in 2024, it will be difficult to shake off last year's negativity.

Industrial orders in October 2023 were near their lowest level since mid-2020, and economists expect data on Monday January 8 will show a 1% increase, which is not even close to enough to correct the losses. Export data will be published on the same day.

On Tuesday, January 9, data on industrial production, also at similarly low levels, will show whether it has finally begun to recover after five straight months of decline.

The overall impression may point to a second quarter of contraction, which is conditional called a recession. More complete information will be available on January 15, when German cabinet members release the first national estimate of G-7 gross domestic product for 2023, which is likely to show a slight year-on-year fall.

A fall of 0 is likely to be recorded. .1%, as estimated by the Bundesbank, or 0.3%, as estimated by the European Commission.

The only time in the last two decades that Germany performed worse was in 2009, when the global financial crisis raged, and then during pandemic shock in 2020.

The energy issue that arose after the failure of Russian gas is also causing problems.

Given this, the Bundesbank expects total growth in 2024 to be only 0 this year .4%.

minfin.com.ua

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