Süddeutsche Zeitung reported that Germany's GDP could slide downhill in Q2 2024. The German economy revealed the signs of a slight stagnation in Q2 2024. It seems the economy decided to take a little vacation. Experts found out that German entrepreneurs are stubbornly unwilling to invest.
The IFO business climate index echoed this viewpoint. The think tank admitted that the transportation and logistics sectors are growing at a snail’s pace, while the construction industry has to deal with a bunch of woes.
However, not just the suddenly frugal business owners are to blame. Cautious consumers, spooked by the crisis and suffering from “inflationary memory," have also their finger in the pie. Inflation in Germany has followed a winding path, mimicking neighboring EU countries. Germany’s annual CPI logged an uptick in July.
The news from Germany's Federal Statistical Office (Destatis) is adding to the grim picture. It turns out that Germany's national debt swelled and set a new record in 2023, standing at €2.45 trillion. Since 2022, the debt has grown by €77 billion (or 3.3%). Now every German citizen holds a portion of 28,900 in the government debt—€778 more than last year.
