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
Al Mayadeen's correspondent: Two were martyred in an initial toll of the Israeli drone strike that targeted the al-Asira neighborhood in the city of Baalbek, eastern Lebanon
Al Mayadeen's correspondent: An Israeli drone strike targeted the al-Asira neighborhood east of Baalbek, eastern Lebanon
Sheikh Naim Qassem to the pager attack survivors: You are the greatest resistance. Know that 'Israel' will fall because it embodies aggression, crime, and occupation; victory is truly yours
Sheikh Qassem to the pager attack survivors: The value of what you are doing despite your wounds is immense, and here you are, treading the path of the Master of Nation's Martyrs and the leaders
Sheikh Qassem to the pager attack survivors: You are moving forward with insight deeper than sight itself. The enemy sought to eliminate your role in the battle, yet you remain steadfast and continue the fight
Hezbollah Secretary-General Sheikh Naim Qassem to the pager attack survivors one year later: You are healing from your wounds and rising above them. You have successfully passed the test
Palestinian media: Reports of stabbing operation in occupied al-Quds.
Israeli media: Sirens blare in Arava in South, near Ramon Airport.
Egyptian PM Mostafa Madbouli: Egypt is targeted in plans to redraw regional map
AEOI Chief Mohammad Eslami: Our presence in IAEA General Council and fact-checking helped in preventing unilateral rhetoric that aims to portray Iran as an unregulated country

Germany's faces longest post-war recession, report finds

  • By Al Mayadeen English
  • Source: Agencies
  • 4 Jan 2025 18:41
  • 1 Shares
3 Min Read

The Federal Statistical Office is expected to confirm the contraction for 2024 when it releases official data on January 15.

Listen
  • x
  • AP
    A BP refinery steams in Gelsenkirchen, Germany, while Europe's biggest economy is still shrinking for a second consecutive year and German industrial workers fear for their jobs, on Thursday, October 24, 2024. (AP)

The German economy is heading toward its most prolonged recession since World War II, with three consecutive years of contraction anticipated by 2025, according to a report by the Handelsblatt Research Institute (HRI).

The institute projects a 0.1% economic decline in 2025, following contractions of 0.3% in 2023 and 0.2% in 2024. This surpasses the two-year downturn experienced in the early 2000s and reflects the compounded impact of an energy crisis, persistent inflation, and the aftermath of the COVID-19 pandemic.

"The German economy is in the midst of its greatest crisis in post-war history," stated HRI chief economist Bert Rurup. Demographic factors, particularly an aging population, are exacerbating the situation. The HRI estimates that Germany's annual growth potential has dropped to just 0.5%. "The economy is at the beginning of a strong aging spurt," Rurup added.

The Federal Statistical Office is expected to confirm the contraction for 2024 when it releases official data on January 15. While HRI predicts a slight economic recovery in 2026, growth is expected to reach only 0.9%, significantly below pre-crisis levels. The German central bank also revised its growth forecast for 2025 in December, lowering it from 1.1% to 0.2%.

Related News

Millions of children in UK going hungry amid economic crisis

Will the idea of pan-Africanism survive migration, economic crises?

Energy Crisis

One of the key drivers of Germany's economic troubles is the loss of access to affordable Russian gas. The country's reliance on liquefied natural gas (LNG) from the US has driven energy costs higher, severely affecting manufacturers and small businesses. Rising costs have led to shutdowns and bankruptcies across several industries, including major players such as Volkswagen.

Read more: India surpasses China as Russia's top oil importer, data reveals

Before the escalation of the Ukraine conflict, Germany depended on Russian gas for over half of its energy needs. EU sanctions against Russia led to drastic reductions in gas deliveries, culminating in the destruction of the Nord Stream pipelines in September 2022. Most recently, Russia officially suspended gas transit to the EU through Ukraine on January 1, 2025 following Ukraine's refusal to renew the transit agreement.

Economic Struggles

Germany's export sector, particularly high-value manufacturing, remains a relative strength, but even it faces challenges from global instability and soaring energy prices. Former Chancellor Angela Merkel has criticized the decision to cut ties with Russian gas, calling the past arrangement a "win-win situation" in a December interview with France 2 TV. "Now prices have exploded," she remarked.

Economic concerns have become a central issue for Germans. A December poll by ARD identified the economy as the top voter priority. These concerns contributed to the collapse of Chancellor Olaf Scholz's coalition in November, triggering an early general election scheduled for February 23.

  • economic crisis
  • Energy crisis
  • Germany
  • Recession
  • German economy

Most Read

Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025
A screengrab from the ad played on Fox News. (X Screengrab)

Fox airs ad warning Trump not to let Netanyahu 'play' him on Gaza

  • US & Canada
  • 11 Sep 2025
Lapid: Egypt’s Arab Force plan a 'severe blow' to normalization

Lapid: Egypt’s Arab Force plan a 'severe blow' to normalization

  • Palestine
  • 14 Sep 2025
UKLFI’s latest faux pas, like "Israel’s" recent failed attempt at regime change in Iran, is unambiguously indicative of a flailing entity on the verge of extinction. (Al Mayadeen English; Illustrated by Zeinab el-Hajj)

Zionist lawfare operation facing collapse?

  • Opinion
  • 13 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A Hezbollah supporter who lost his sight in a pager attack carried out by "Israel" on Sept. 17, 2024, covers his eyes with a red headband inscribed with the name "Hussein" during Ashoura, July 6, 2025 (AP)
Politics

'We Have Recovered': Lebanon marks 1st anniversary of Pager Attack

The Arab neighborhood of El Za'im, on the outskirts of east Occupied Al-Quds in the West Bank, near where Israeli government says housing units will be built as part of the E1 settlement project, Thursday, August 21, 2025. (AP Photo/Ohad Zwigenberg)
Palestine

'Israel’s' deliberate policies drive West Bank economy toward collapse

Ben & Jerry's ice cream shop, Wednesday, Feb. 26, 2025, in Cambridge, Mass. (AP Photo/Charles Krupa)
Politics

Ben & Jerry’s co-founder resigns over parent company curbing activism

Trump’s approval rating falls to new low in second term: Poll
US & Canada

Trump’s approval rating falls to new low in second term: Poll

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