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.

Germany’s economy is tanking—again. For the second year in a row, Europe’s largest economy is officially in decline, shrinking by 0.2% in 2024 after a 0.3% contraction in 2023. This is the first time since 2003 that Germany has suffered back-to-back GDP drops.

Germany's statistics office says the country's economy shrank by 0.2% in 2024 in second consecutive year of decline

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.

Simply sign up to the German economy myFT Digest -- delivered directly to your inbox. Germany’s economy shrank for a second straight year in 2024, underlining the severity of the downturn facing Europe’s manufacturing powerhouse.

The German economy contracted by 0.2% in 2024, in the second consecutive year of declines in the annual gross domestic product of Europe's largest economy.