Crisis-hit Germany is worst-performing major economy
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The news: Germany was the worst-performing major economy last year, with inflation, rising interest rates and high energy costs contributing to a 0.3% contraction in output.
The numbers: According to initial figures released by Destatis, Germany's federal statistics agency, Europe’s largest economy was one of the weakest performers in the world last year, though gross domestic product remained above pre-pandemic levels at 0.7%.
The context: Germany's economic decline comes after a difficult year for the country, which has seen national train strikes and farmers' protests against fuel subsidy cuts.
What they said: "Overall economic development faltered in Germany in 2023 in an environment that continues to be marked by multiple crises", said Destatis president Ruth Brand.
"Despite recent price declines, prices remained high at all stages in the economic process and put a damper on economic growth. Unfavourable financing conditions due to rising interest rates and weaker domestic and foreign demand also took their toll. Therefore, the German economy did not continue its recovery from the sharp economic slump experienced in the pandemic year of 2020."
The source: Destatis Media Release
