Germany's Economy Contracts by 0.3% in 2023 Amid Multiple Crises

High energy costs, increased interest rates, labor shortages, and a budget crisis contribute to the downturn, sparking protests and industrial action.

• Germany's economy contracted by 0.3% in 2023, marking a significant downturn for Europe's largest economy.
• High energy prices, increased interest rates, a lack of skilled labor, and a budget crisis have been identified as key factors in the contraction.
• Germany narrowly avoided a technical recession, with the economy stagnating in the third quarter and contracting in the fourth.
• Experts predict that Germany will be the only G7 economy that shrank in 2023, with the IMF forecasting a growth of only 0.9% in 2024.
• Protests and industrial action have erupted in response to government cutbacks and tax hikes necessitated by a €17 billion budget deficit.

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