The German Central Bank gave negative expectations regarding the German economy in 2024
The German Central Bank estimates that the period of weakness in the German economy will continue into the new year temporarily.
In its monthly report for the month of January, the German Central Bank revealed that, “In general, the economic performance in Germany could record a recession at best in the first quarter of 2024,” indicating that the expected economic recovery will be delayed.
The German Central Bank said in the report, “In general, the economic situation currently appears slightly weaker than expected in December forecasts; Evidence that external industrial demand has actually reached its lowest level hasn’t yet been confirmed”.
It should be noted that the forecasts published by the German Central Bank in mid-December indicated that the largest economy in Europe would achieve a growth rate of 0.4% in 2024 after the contraction it recorded in 2023.
The German Central Bank expected that the German economy in the long term would achieve relatively strong growth of 1.2%. % in 2025 and by 1.3% in 2026.
Preliminary data from the Federal Statistical Office in Germany indicated that the German economy recorded a recession last year, as the office stated that the German gross domestic product decreased in 2023 by 0.3% compared to 2022 after adjusting prices.
According to estimates, the German GDP recorded a contraction of 0.3% in the closing quarter of last year compared to the previous quarter after taking price and calendar factors into account.
