Germany's economy contracted by 0.2% in the fourth quarter of 2024, according to the Bundesbank's latest monthly report published on Monday. The Federal Statistical Office's flash estimate showed that weaker exports and a downturn in key industrial sectors contributed to the decline.
Industrial production fell in the autumn, with the automotive and energy-intensive industries experiencing significant slowdowns. However, growth was observed in the manufacture of electrical equipment, data processing devices, and other vehicle construction, which has been expanding in recent years.
Meanwhile, inflation accelerated slightly. The Harmonized Index of Consumer Prices (HICP) rose by 2.5% year-on-year in the October-December period, compared to 2.2% in the previous quarter. The core inflation rate, which excludes energy and food, edged up to 3.2%.