German GDP falls 0.2% in Q4
By Frank Prenesti
Date: Thursday 30 Jan 2025
(Sharecast News) - German GDP contracted more than expected in the final three months of 2024, according to flash estimates published on Thursday.
Gross domestic product (GDP) was 0.2% lower year on year in 2024 than in the previous year against estimates of 0.1%, the federal statistics office Destatis said.
"Cyclical and structural pressures stood in the way of better economic development in 2024," said Destatis president Ruth Brand on Thursday.
"These include increasing competition for the German export industry on key sales markets, high energy costs, an interest rate level that remains high, and an uncertain economic outlook. Against this backdrop, the German economy contracted once again in 2024."
In manufacturing, output was down and gross value added marked a sharp 3% decline year on year.
Key sectors, such as machinery and equipment manufacture and the automotive industry saw a marked decline in production. Production remained at a low level in energy-intensive industrial branches, which include the chemical and metal-working industries. In 2023, production had decreased considerably owing to the sharp rise in energy prices, Destatis added.
On an annual average, 46.1 million people were in employment in 2024, a rise of 72,000, or 0.2%, from the previous year and a new record high for the number of persons in employment.
However, the pace of employment growth "slowed considerably and ultimately came to a halt" towards the end of 2024. Employment gains observed in 2024 were entirely attributable to the public service, particularly education and health, while the number of people employed in industry and construction decreased.
Reporting by Frank Prenesti for Sharecast.com
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