German central bank issues economic warning
The Bundesbank predicts that the German economy will continue to experience stagnation throughout 2024. Read Full Article at RT.com
TroibNews 
Germany’s GDP may experience stagnation or even a slight decline in the third quarter, according to a warning from the Bundesbank.
The German economy has been on a downward trend for the past two years and is expected to remain stagnant through the end of the year as it continues to face economic difficulties, as reported by Bloomberg on Friday.
A survey conducted by the outlet indicates that the EU’s leading economy has been experiencing a slowdown during the three months leading up to September, resulting in a deeper contraction than anticipated.
Economists have started revising their forecasts for the year, with some predicting prolonged stagnation or the possibility of another downturn.
“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,” Martin Belchev, an analyst at FrontierView, told Bloomberg. He cautioned that the struggling automotive sector will contribute to further downward pressures on growth, as the top four German car manufacturers have reported double-digit declines.
The central bank indicated in its monthly report on Thursday that the German economy may already be experiencing a recession. The Bundesbank noted that the gross domestic product “could stagnate or decline slightly again” in the third quarter, building on a 0.1% contraction in the second quarter.
Economic sentiment has deteriorated due to weak industrial activity, according to Bundesbank President Joachim Nagel, who stated 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.”
Germany's industry is facing challenges from weak demand in major export markets, shortages of skilled labor, stricter monetary policy, the enduring impact of the energy crisis, and increased competition from China, as noted by Bloomberg.
Over the years, the Eurozone’s largest economy has lagged behind its counterparts, primarily due to a prolonged downturn in manufacturing. In 2023, Germany was the only economy among the Group of Seven to experience contraction.
Aarav Patel contributed to this report for TROIB News
The German economy has been on a downward trend for the past two years and is expected to remain stagnant through the end of the year as it continues to face economic difficulties, as reported by Bloomberg on Friday.
A survey conducted by the outlet indicates that the EU’s leading economy has been experiencing a slowdown during the three months leading up to September, resulting in a deeper contraction than anticipated.
Economists have started revising their forecasts for the year, with some predicting prolonged stagnation or the possibility of another downturn.
“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,” Martin Belchev, an analyst at FrontierView, told Bloomberg. He cautioned that the struggling automotive sector will contribute to further downward pressures on growth, as the top four German car manufacturers have reported double-digit declines.
The central bank indicated in its monthly report on Thursday that the German economy may already be experiencing a recession. The Bundesbank noted that the gross domestic product “could stagnate or decline slightly again” in the third quarter, building on a 0.1% contraction in the second quarter.
Economic sentiment has deteriorated due to weak industrial activity, according to Bundesbank President Joachim Nagel, who stated 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.”
Germany's industry is facing challenges from weak demand in major export markets, shortages of skilled labor, stricter monetary policy, the enduring impact of the energy crisis, and increased competition from China, as noted by Bloomberg.
Over the years, the Eurozone’s largest economy has lagged behind its counterparts, primarily due to a prolonged downturn in manufacturing. In 2023, Germany was the only economy among the Group of Seven to experience contraction.
Aarav Patel contributed to this report for TROIB News
