"German Economy Avoids Recession Despite 0.3% Contraction in 2023"

The German economy contracted by 0.3% in 2023, avoiding a recession but facing challenges from inflation, high energy prices, and weak foreign demand. Analysts predict zero GDP growth in 2024 due to unfavourable financing conditions, declining investment, and tightening fiscal policy. Despite a 0.7% increase in GDP compared to 2019, concerns arise over the economy's slow growth since the pandemic. Industry declined by 2.0% while construction saw modest growth of 0.2%. Household consumption and government expenditure fell, and foreign trade declined despite falling prices. The economy shrank by 0.3% in the final quarter of 2023, and the risk of another recession in 2024 remains high.