Germany's economy is on track to shrink for a second straight year
Germany's government says its economy is on track to shrink for a second consecutive year
BERLIN (AP) — Germany's government said Wednesday that its economy, Europe's biggest, is on track to shrink for a second consecutive year — underlining the unpopular administration's troubles as it heads into a difficult election year.
The new forecast that gross domestic product will shrink by 0.2% this year compares with the government's prediction in April of 0.3% growth and brings it into line with economists, who also have forecast a slight contraction. The German economy shrank by 0.3% in 2023.
The government forecast growth of 1.1% next year and 1.6% in 2026.
Vice Chancellor Robert Habeck, who is also the economy minister, said that the German economy hasn't seen powerful growth since 2018 as the country's structural problems have been joined by wider global challenges.
