Germany's Economy Faces Prolonged Stagnation as Regional Disparities Deepen

New data confirms a second year of economic contraction in 2024, with industrial downturns and uneven regional performance highlighting structural challenges.

Germany's GDP shrank by 0.2% in 2024, marking the second consecutive year of contraction, driven by industrial and construction sector declines.
Hamburg led economic growth with a 1.7% GDP increase in 2024, buoyed by a 5.0% rise in its industrial sector, contrasting sharply with struggling regions.
Thuringia and Rheinland-Pfalz saw steep economic declines of 1.3% and 1.1% respectively, with significant downturns in manufacturing and construction.
Berlin's economy grew by 0.8% in 2024, outperforming the national average but slowing significantly compared to previous years, with weak growth in key service sectors.
Experts predict stagnation or minimal growth for Germany in 2025, emphasizing the need for urgent reforms to address high energy costs, bureaucracy, and infrastructure deficits.