Germany's economy contracted for the second consecutive year in 2024, highlighting the depth of the downturn gripping Europe's biggest economy. Germany's economy shrank by 0.2% over the full year - in line with economists' forecasts - and by 0.

Germany's economy shrank for a second straight year in 2024, official figures showed Wednesday, with little hope of a speedy recovery as Europe's traditional powerhouse is also mired in political crisis.

Friedrich Merz, the chancellor candidate for the conservative Christian Democratic Union acknowledged the need for a “major effort” to revive the economy as his party pledges to return German growth to 2 percent over the next five years through changes to the welfare and tax systems.

The German economy, Europe's biggest, shrank for the second consecutive year in 2024, according to preliminary official figures released Wednesday weeks before an election in which the economy is the top issue.

Gross domestic product in the eurozone’s largest economy declined 0.2 percent last year, according to preliminary figures from federal statistics agency Destatis, coming after a 0.3 percent contraction in 2023.

Germany’s economy contracted for the second consecutive year in 2024 as cautious consumers curtailed spending even as competition from China eroded the country’s traditional export markets, particularly cars and industrial machinery. The development highlights the challenges the next government will face after the snap elections in February.

Germany’s economy, the largest in Europe, contracted for the second year in a row in 2024, official data showed Wednesday, underscoring the challenges facing the region as it tries to get economic growth back on track.