South Korean media: Germany's GDP grew by 0.2% last year, for the first time in three years to escape negative growth!
On January 16, South Korean media "Seoul Economic Daily" published an article stating that data released by the German Federal Statistics Office showed that Germany's gross domestic product (GDP) grew by 0.2% year-on-year last year.
Previously, the German economy had shrunk for two consecutive years, with actual GDP growth rates of -0.9% and -0.5% in 2023 and 2024, respectively. Ruth Brand, head of the German Federal Statistics Office, said, "After two years of decline, the German economy has seen a slight increase again." She believed this was mainly due to increased government and private consumption spending.
However, the manufacturing sector, including automobiles and machinery, which is the pillar of the German economy, fell by 1.3%, marking the third consecutive year of decline. Exports also shrank by 0.3%, also the third consecutive year of decline. The German Federal Statistics Office explained that exports were hit by U.S. tariffs, a strong euro, and intense competition with China, while investment in facilities and construction also declined, leading to weak economic performance.
Experts predict that due to government spending on defense and infrastructure, the German economy will grow by about 1% this year. In March last year, the German government amended the Basic Law, establishing a special fund for infrastructure investment over 12 years with a total amount of 500 billion euros, and defense budgets were basically allowed to be funded without restrictions. However, the effect of this stimulus measure has not yet been reflected.
German Chancellor Friedrich Merz recently stated, "The situation in certain regions is very severe, and solving issues such as bureaucracy and excessive tax burdens that hinder economic development is the top priority this year."
Original: toutiao.com/article/1854474714059776/
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