Current:Home > Contact-usGermany’s economy seen shrinking again in the current quarter as business confidence declines-LoTradeCoin
Germany’s economy seen shrinking again in the current quarter as business confidence declines
View Date:2024-12-23 16:30:32
BERLIN (AP) — Germany’s economy is likely to shrink again slightly in the current fourth quarter, the country’s central bank said Monday, while a survey showed business confidence retreating unexpectedly.
Europe’s biggest economy contracted by 0.1% in the third quarter after growing by the same amount in the previous three-month period, according to official figures.
The Bundesbank said in its monthly report that “real gross domestic product in Germany is likely to decline again slightly in the fourth quarter of 2023” as a result of weak performances in industry and construction
Two consecutive quarters of contraction is a common definition of recession, though the economists on a panel that declares recessions in the eurozone use a broader set of data, including employment figures.
Germany is the only major economy expected to shrink this year, according to the International Monetary Fund, which foresees a decline of 0.5%. The German government has forecast a decline of 0.4%.
The economy has been weighed down by high energy prices, global economic weakness and interest rate hikes to fight inflation. Those problems recently have been joined by a home-grown budget crisis that forced the government to draw up a package of measures to cut subsidies and some spending to comply with Germany’s tight self-imposed restrictions on running up debt.
Germany has also been grappling with other issues such as an aging population, lagging use of digital technology in business and government, excessive red tape that holds back business launches and public construction projects, and a shortage of skilled labor.
Also on Monday, the Ifo Institute said that its closely watched business confidence survey declined from 87.2 points in November to 86.4 this month. That defied economists’ expectations of a slight increase to 87.7.
Managers’ view of both their current situation and the outlook for the next six months darkened. The survey is based on monthly responses from about 9,000 businesses across various sectors.
“The fiscal woes of the last month have clearly left their mark on the German economy, with the country’s most prominent leading indicator today showing just how difficult it will be for the economy to bounce back,” ING economist Carsten Brzeski said.
veryGood! (3123)
Related
- How Kim Kardashian Navigates “Uncomfortable” Situations With Her 4 Kids
- NYC man pleads guilty to selling cougar head, other exotic animal parts to undercover investigator
- 'You can't be gentle in comedy': Jerry Seinfeld on 'Unfrosted,' his Netflix Pop-Tart movie
- Music Review: Dua Lipa’s ‘Radical Optimism’ is controlled dance pop
- Should Georgia bench Carson Beck with CFP at stake against Tennessee? That's not happening
- Whoopi Goldberg Reveals Who She Wants to Inherit Her $60 Million Fortune
- North Carolina candidate for Congress suspends campaign days before primary runoff after Trump weighs in
- 'Tattooist of Auschwitz': The 'implausible' true love story behind the Holocaust TV drama
- Amazon Best Books of 2024 revealed: Top 10 span genres but all 'make you feel deeply'
- 'Tattooist of Auschwitz': The 'implausible' true love story behind the Holocaust TV drama
Ranking
- New Orleans marks with parade the 64th anniversary of 4 little girls integrating city schools
- Tiffany Haddish Reveals the Surprising Way She's Confronting Online Trolls
- Judge says gun found in car of Myon Burrell, sentenced to life as teen, can be evidence in new case
- Wisconsin Supreme Court will decide whether mobile voting sites are legal
- Michael Jordan and driver Tyler Reddick come up short in bid for NASCAR championship
- Jobs report today: Employers added 175,000 jobs in April, unemployment rises to 3.9%
- Nordstrom Rack is Heating Up With Swimsuit Deals Starting At $14
- Kate Middleton and Prince William’s Designer Friend Says They’re “Going Through Hell”
Recommendation
-
Guns smuggled from the US are blamed for a surge in killings on more Caribbean islands
-
Reports: Odell Beckham Jr. to sign with Miami Dolphins, his fourth team in four years
-
California man who testified against Capitol riot companion is sentenced to home detention
-
NFL Network cancels signature show ‘Total Access’ amid layoffs, per reports
-
Colorado police shot, kill mountain lion after animal roamed on school's campus
-
Former Boy Scout volunteer sentenced to 22 years in prison for hiding cameras in camp bathrooms
-
Who won Deion Sanders' social media battles this week? He did, according to viewership
-
New Hampshire jury finds state liable for abuse at youth detention center and awards victim $38M