Germany's Economic Struggles Deepen, with Saxony and Thuringia Facing Sharp Declines

New data shows Saxony's economy contracted by 0.4% and Thuringia's by 1.3% in 2024, highlighting regional disparities and sectoral challenges in construction and manufacturing.

Germany's GDP contracted by 0.2% in 2024, marking the second consecutive year of economic decline and the longest stagnation in decades.
Saxony's economy shrank by 0.4% in 2024, with the construction sector declining by 3.6%, significantly impacting regional growth.
Thuringia experienced a sharper contraction of 1.3%, driven by a 5.3% decline in construction and a 2.9% drop in manufacturing output.
Per capita GDP in Saxony reached €39,667 in 2024, just 78% of the national average of €50,819, underscoring regional economic disparities.
Structural challenges, including high energy costs, declining industrial competitiveness, and bureaucratic inefficiencies, continue to hinder Germany's recovery prospects.