Gross domestic product fell by 0.2% in 2024 compared to the previous year, both price-adjusted and price- and calendar-adjusted. This emerges from the first calculations by the Federal Statistical Office. “Economic and structural burdens stood in the way of better economic development in 2024,” said Destatis President Ruth Brand, classifying the figures when they were announced: “These include increasing competition for the German export industry in important sales markets, high energy costs, and a continued increased interest rates, but also uncertain economic prospects. In this environment, the German economy shrank again in 2024,” Brand continued. It is the second time in a row that Germany’s GDP is shrinking.
Price-adjusted macroeconomic gross value added fell by 0.4% in 2024. There were clear differences between the individual economic sectors. While value added fell significantly in manufacturing (-3.0%) and in construction (-3.8%), there was an increase of 0.8% in the service sectors, which also includes trade. In the combined trade, transport and hospitality segment there was a change of 0.0%, but value added in retail was increased.
