EU's Biggest Economy Expected to Grind to a Halt
According to the Bundesbank, the German economy is projected to remain stagnant throughout 2024. Read Full Article at RT.com
TroibNews 
Germany's economy is projected to stagnate or potentially decline in the third quarter, according to a warning from the Bundesbank.
Reporting from Bloomberg indicated that the German economy has been contracting for the past two years and is expected to remain stagnant through the rest of the year as it continues to face economic challenges. A recent survey by the outlet revealed that the country's economy has been underperforming during the three months leading up to September, indicating a deeper decline than anticipated.
Economists are revising their forecasts for this year, with some predicting prolonged stagnation or another recession. “While we expect the market to see a mild recovery at the end of 2024 and in 2025, much of it will be cyclical, with downside risks remaining acute,” stated Martin Belchev, an analyst at FrontierView.
Belchev cautioned that the struggling automotive sector will add to the existing downward pressures on growth, as the top four German car manufacturers have experienced double-digit declines.
Thousands of EU automotive jobs are at risk, as Bloomberg has recently reported.
In its monthly report released on Thursday, the country's central bank suggested that Germany may already be in recession. The Bundesbank noted that gross domestic product “could stagnate or decline slightly again” in the third quarter, following a 0.1% contraction in the second quarter.
Economic sentiment is suffering due to weak industrial activity, as mentioned by Bundesbank President Joachim Nagel on Wednesday. “Stagnation might be more or less on the cards for full-year 2024 as well if the latest forecasts by economic research institutes are anything to go by,” he remarked.
German industry is grappling with weak demand in crucial export markets, a shortage of qualified workers, stricter monetary policy, the ongoing repercussions of the energy crisis, and increasing competition from China, as highlighted by Bloomberg.
The largest economy in the Eurozone has been lagging behind its peers in recent years, primarily due to a prolonged downturn in manufacturing. Notably, Germany was the only economy in the Group of Seven to experience contraction in 2023.
Lucas Dupont contributed to this report for TROIB News
Reporting from Bloomberg indicated that the German economy has been contracting for the past two years and is expected to remain stagnant through the rest of the year as it continues to face economic challenges. A recent survey by the outlet revealed that the country's economy has been underperforming during the three months leading up to September, indicating a deeper decline than anticipated.
Economists are revising their forecasts for this year, with some predicting prolonged stagnation or another recession. “While we expect the market to see a mild recovery at the end of 2024 and in 2025, much of it will be cyclical, with downside risks remaining acute,” stated Martin Belchev, an analyst at FrontierView.
Belchev cautioned that the struggling automotive sector will add to the existing downward pressures on growth, as the top four German car manufacturers have experienced double-digit declines.
Thousands of EU automotive jobs are at risk, as Bloomberg has recently reported.
In its monthly report released on Thursday, the country's central bank suggested that Germany may already be in recession. The Bundesbank noted that gross domestic product “could stagnate or decline slightly again” in the third quarter, following a 0.1% contraction in the second quarter.
Economic sentiment is suffering due to weak industrial activity, as mentioned by Bundesbank President Joachim Nagel on Wednesday. “Stagnation might be more or less on the cards for full-year 2024 as well if the latest forecasts by economic research institutes are anything to go by,” he remarked.
German industry is grappling with weak demand in crucial export markets, a shortage of qualified workers, stricter monetary policy, the ongoing repercussions of the energy crisis, and increasing competition from China, as highlighted by Bloomberg.
The largest economy in the Eurozone has been lagging behind its peers in recent years, primarily due to a prolonged downturn in manufacturing. Notably, Germany was the only economy in the Group of Seven to experience contraction in 2023.
Lucas Dupont contributed to this report for TROIB News
