Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Palestinian Ministry of Health: Two were martyred in Israeli shelling that targeted a besieged house in the town of Qabatiya in Jenin
At least 68 dead in migrant shipwreck off Yemen: IOM
Trump: We want to feed the people in Gaza, we do not want them to starve.
US President Donald Trump: We will impose sanctions on Russia if it does not end the war on Ukraine.
Israeli media: Polls show that 52% oppose Prime Minister Benjamin Netanyahu while only 29% support him.
Israeli media: 32% of Americans still support "Israel's" war on Hamas, while 60% oppose it.
Israeli media: Core US support for "Israel" hits its lowest, while support for Palestine reaches its highest levels.
Al Mayadeen's correspondent reports martyrs, injuries in Israeli bombardment of home in Heker al-Jame area in Deir al-Balah, central Gaza.
Al-Quds Governorate: Today, the spatial division of Al-Aqsa Mosque began in a public and dangerous manner, and we warn of a religious war in the region
The Ministry of Health in Gaza: This brings the total number of victims of famine and malnutrition to 175, including 93 children

German economy shrinks 0.3% in 2023

  • By Al Mayadeen English
  • Source: Agencies
  • 16 Jan 2024 18:18
4 Min Read

The Federal Statistics Office reported a 0.3% shrinkage in Gross Domestic Product (GDP) over the full year 2023.

  • x
  • Germany's second largest refinery of BP in Gelsenkirchen, western Germany, on Jan. 30, 2023. (AP)
    Germany's second-largest refinery of BP in Gelsenkirchen, western Germany, on Jan. 30, 2023 (AP)

The German economy faced a contraction in 2023, influenced by persistent inflation, soaring energy prices, and weakened foreign demand. Despite this, it managed to sidestep a recession by the year's end.

The Federal Statistics Office reported a 0.3% shrinkage in Gross Domestic Product (GDP) over the full year 2023, as announced on Monday.

Ruth Brand, President of the statistics office, remarked, "Overall economic development faltered in Germany in 2023 in an environment that continues to be marked by multiple crises."

"Despite recent price declines, prices remained high at all stages in the economic process and put a damper on economic growth," Brand said. "Unfavourable financing conditions due to rising interest rates and weaker domestic and foreign demand also took their toll."

Read more: Eurozone piles economic hazards; Money supply drops, first since 2010

Andrew Kenningham, Chief Europe Economist at Capital Economics, said "The recessionary conditions which have been dragging on since the end of 2022 look set to continue this year."

Despite recent inflation decreases, challenges remain, with declining investment, construction heading for a downturn, and the government implementing sharp fiscal policy adjustments, he added.

While the German economy did not fully recover from the 2020 pandemic-induced slump, ending 2023 with a 0.7% higher GDP than in 2019, there are worries about its overall stagnation since the outbreak of the coronavirus.

Related News

Bulgaria faces protests as Euro adoption nears approval

German economy set to shrink as part of eurozone slowdown

Commerzbank's Chief Economist Joerg Kraemer told Reuters, "It is worrying that the German economy has hardly grown at all since the outbreak of the coronavirus."

"This is rare and brings back memories of the years following the bursting of the stock market bubble at the start of the millennium," he added.

Read more: Making sense of a self-induced recession in Europe

Economic performance in industry, excluding construction, experienced a 2.0% decline in 2023, primarily driven by lower production in the energy supply sector. Modest growth of 0.2% was noted in the construction sector, impacted by deteriorating financing conditions, high building costs, and a skilled labor shortage.

Household consumption saw a price-adjusted 0.8% decrease in 2023, and government expenditure fell by 1.7%. Foreign trade faced challenges as well, with imports contracting by 3.0% and exports falling by 1.8%, despite falling prices. However, a positive balance of exports and imports supported overall GDP.

Stagnation in Q4 2023

In the final quarter of 2023, the German economy faced a contraction of 0.3% compared to the previous quarter, narrowly avoiding a technical recession. The euro zone's largest economy had already stagnated in the third quarter, as indicated by the upward revision from the statistics office.

"The risk that 2024 will be another year of recession is high," warned Carsten Brzeski, Global Head of Macro at ING, emphasizing the challenges that may persist into the new year.

"Some take comfort in the fact that the economy is 'only' stuck in stagnation and has avoided a more severe recession. But this should be no reason for any complacency," added Brzeski, urging caution despite the economy currently being in a state of stagnation rather than deeper contraction.

As 2024 begins, the uncertainties surrounding economic performance underscore the need for careful observation and proactive measures to address potential downturns in the coming months.

Read more: Russian billionaires taking funds out of Europe back home: Bloomberg

  • Eurozone
  • Germany
  • Recession
  • de-industrialization
  • German economy

Most Read

A rescued crew member from the ETERNITY C vessel in a video released by the Yemeni Armed Forces on July 28, 2025 (Yemeni Military Media)

Yemen Navy reveals fate of targeted Eternity C ship crew

  • Politics
  • 28 Jul 2025
An Israeli tank explodes following an ambush by al-Qassam Brigades in Gaza, Occupied Palestine, undated (Al-Qassam Military Media)

Al-Qassam strikes Israeli vehicles in Gaza, inflicts casualties

  • Politics
  • 30 Jul 2025
UAE lodges complaint against Israeli ambassador over 'misbehavior'

UAE lodges complaint against Israeli ambassador over 'misbehavior'

  • Politics
  • 1 Aug 2025
Protesters chant anti-Israeli slogans as they carry a banner that reads:" Freedom for Palestine, Alliance stop the war," during a demonstration in support of Palestinians in Gaza, outside the Israeli embassy, in Athens, Monday, June 9, 2025 (AP)

Athens mayor slams Israeli ambassador over Gaza war, graffiti claim

  • Politics
  • 3 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A member of the al-Qassam Brigades, the armed wing of Hamas, takes part in a parade as he celebrates a ceasefire agreement between Hamas and the Israeli regime in Deir al-Balah, Gaza Strip, Sunday, January 19, 2025 (AP)
Politics

Al-Qassam: We’ll allow aid to Israeli captives if Gaza siege ends

Freed Lebanese freedom fighter Georges Abdallah during an interview on Al Mayadeen, which aired on Sunday, August 3, 2025 (Al Mayadeen screengrab)
Politics

Exclusive: Resistance key to building state, Georges Abdallah says

United Nations Secretary General Antonio Guterres gives a statement about the situation in Gaza at UN headquarters, Friday, June 27, 2025 (AP)
Politics

UN warns Gaza faces water crisis, looming famine under Israeli siege

Israeli soldiers drive their armored personnel carrier along the Gaza Strip, in southern occupied Palestine, Wednesday, July 30, 2025 (AP)
Politics

Ex-Israeli general says Gaza starvation campaign isolated 'Israel'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS