German Economy Stalls with Minimal Growth in Q3

Germany narrowly avoids a recession, but structural issues and global challenges weigh heavily on its outlook.

Germany's GDP grew by only 0.1% in the third quarter, revised down from an earlier estimate of 0.2%, narrowly avoiding a technical recession.
Key sectors like automotive, machinery, and chemicals experienced significant production declines, with exports dropping 1.9% from the previous quarter.
Consumer spending increased by 0.3% and government expenditures by 0.4%, providing slight support to the economy, but investment in machinery and construction fell.
The collapse of the coalition government and Donald Trump's U.S. election victory have added uncertainty, with potential tariffs threatening export-heavy industries.
Economists predict continued stagnation in 2024, with limited recovery expected in 2025 unless significant reforms are implemented.