Germany's economy shrunk for a second consecutive year in 2024, continuing its struggle with internal and external challenges.

Friedrich Merz, the chancellor candidate for the conservative Christian Democratic Union acknowledged the need for a “major effort” to revive the economy as his party pledges to return German growth to 2 percent over the next five years through changes to the welfare and tax systems.

Gross domestic product in the eurozone’s largest economy declined 0.2 percent last year, according to preliminary figures from federal statistics agency Destatis, coming after a 0.3 percent contraction in 2023.

The German economy, Europe's biggest, shrank for the second consecutive year in 2024, according to preliminary official figures released Wednesday weeks before an election in which the economy is the top issue.

The German economy, Europe's biggest, shrank for the second consecutive year in 2024, according to preliminary official figures released Wednesday weeks before an election in which the economy is the top issue.

Germany’s economy contracted for the second consecutive year in 2024 as cautious consumers curtailed spending even as competition from China eroded the country’s traditional export markets, particularly cars and industrial machinery. The development highlights the challenges the next government will face after the snap elections in February.

Germany's economy shrank for a second straight year in 2024, official figures showed Wednesday, with little hope of a speedy recovery as Europe's traditional powerhouse is also mired in political crisis.

Germany, Europe’s largest economy, recorded its second consecutive annual contraction in 2024, with gross domestic product (GDP) shrinking by 0.2%, according to data from the Federal Statistics Office,

Europe's biggest economy shrank for a second year in a row in 2024, according to data released on Wednesday by the Federal Statistics Office. View on euronews