---
title: The German economy has shrunk for 2nd year in a row ahead of elections, driven by both cyclical & structural challenges
description: "German GDP declined by 0.2% in 2024, following a 0.3% drop in 2023. This marks only 2nd time since 1950 that econ has contracted for 2 consecutive yrs. Germany's prospects for 2025 remain bleak. Bundesbank predicts growth of just 0.2% and warns that another contraction is even possible if US President-elect Trump follows through on his tariff threats. \nSource: HolgerZ, Bloomberg"
---

[Syz The Moment](https://blog.syzgroup.com/syz-the-moment)

# [The German economy has shrunk for 2nd year in a row ahead of elections, driven by both cyclical & structural challenges](https://blog.syzgroup.com/syz-the-moment/the-german-economy-has-shrunk-for-2nd-year-in-a-row-ahead-of-elections-driven-by-both-cyclical-structural-challenges)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Jan 16, 2025, 8:14:03 AM

[View full post](https://blog.syzgroup.com/syz-the-moment/the-german-economy-has-shrunk-for-2nd-year-in-a-row-ahead-of-elections-driven-by-both-cyclical-structural-challenges)

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