Germany is on track for its first two-year recession since the early 2000s after its economy shrank in 2023 amid the impact of higher energy costs and weaker industrial demand.
The German national statistics office said “multiple crises” affecting the economy had contributed to a 0.3% fall in gross domestic product (GDP) in 2023 from the previous year as higher interest rates and elevated living costs took their toll.
Carsten Brzeski, the global head of macro research at the Dutch bank ING, said: “There is no imminent rebound in sight and the economy looks set to go through the first two-year recession since the early 2000s.
Germany’s dominant industrial base, excluding construction, fell by 2% over the course of the year, as higher energy costs and dwindling demand at home and from abroad weighed on factory output.
Experts said the country’s economy was in “permanent crisis mode” as supply chain frictions, persistent inflationary pressures, weaker global demand for manufactured goods and higher interest rates weigh on national output.
Andrew Kenningham, the chief Europe economist at the consultancy Capital Economics, said: “The recent fall in inflation should provide some relief for households, but residential and business investment are likely to contract, construction is heading for a steep downturn and the government is tightening fiscal policy sharply.
The original article contains 463 words, the summary contains 215 words. Saved 54%. I’m a bot and I’m open source!
This is the best summary I could come up with:
Germany is on track for its first two-year recession since the early 2000s after its economy shrank in 2023 amid the impact of higher energy costs and weaker industrial demand.
The German national statistics office said “multiple crises” affecting the economy had contributed to a 0.3% fall in gross domestic product (GDP) in 2023 from the previous year as higher interest rates and elevated living costs took their toll.
Carsten Brzeski, the global head of macro research at the Dutch bank ING, said: “There is no imminent rebound in sight and the economy looks set to go through the first two-year recession since the early 2000s.
Germany’s dominant industrial base, excluding construction, fell by 2% over the course of the year, as higher energy costs and dwindling demand at home and from abroad weighed on factory output.
Experts said the country’s economy was in “permanent crisis mode” as supply chain frictions, persistent inflationary pressures, weaker global demand for manufactured goods and higher interest rates weigh on national output.
Andrew Kenningham, the chief Europe economist at the consultancy Capital Economics, said: “The recent fall in inflation should provide some relief for households, but residential and business investment are likely to contract, construction is heading for a steep downturn and the government is tightening fiscal policy sharply.
The original article contains 463 words, the summary contains 215 words. Saved 54%. I’m a bot and I’m open source!