Candidates in the upcoming federal election are focused on lowering taxes and increasing public spending.

Germany’s economic output shrank for a second straight year in 2024, data released Wednesday showed. How to revive it has become a central issue as voters prepare to go to the polls next month to elect a new government.

The economy declined 0.2 percent in 2024, after a similarly slight contraction the year before. Manufacturing of automobiles and machinery fell sharply, as increased competition, especially from China, and flagging demand in Europe led to a 3 percent drop in output compared with the previous year. Construction fared even worse, falling 3.8 percent compared with 2023.

The German economy, which is Europe’s largest, has been weighed down by high interest rates and energy costs, along with persistent political uncertainty that culminated in the collapse of Chancellor Olaf Scholz’s government in November.

The country is expected to post slow growth in

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