Germany's Recession Lingers, Contrasting with Europe's Growth

Germany is predicted to be the only major European economy to experience an economic contraction this year, with a 0.4% fall in economic activity, according to the European Commission. The country's struggles can be attributed to factors such as the aftermath of Russia's invasion of Ukraine and declining manufacturing activity. The European Commission also revised its growth expectations for Germany in 2024. Additionally, the forecasts point to a general slowdown across the region, with the 27 EU economies expected to grow at an average pace of 0.8% this year. High inflation continues to be a challenge, with consumer prices likely to remain above the European Central Bank's target.