German Economy Contracted 02 2024 2025 01 15
ReutersJAN 28
Germany: Economy Shrinks for Second Consecutive Year
Above: A large hall at a depth of 38 meters can be seen on the construction site of the second main line at Marienhof during a media visit on the occasion of a tunnel tapping ceremony, Jan. 15, 2025. Image copyright: Matthias Balk/picture alliance via Getty Images
The Spin
Pro-establishment narrative
Germany faces economic challenges, but recovery is within reach. Strengthening integration within the European Single Market, especially in services, and finalizing a free trade agreement with South America can boost growth and competitiveness. Combined with targeted investments in innovation, infrastructure, and climate adaptation, these measures will enhance productivity and restore economic dynamism. With decisive action, Germany can overcome stagnation and secure long-term prosperity.
Establishment-critical narrative
Germany’s economy is on the ropes, with outdated practices persisting and industries losing competitiveness. Much of this can be traced back to former Chancellor Angela Merkel's tenure, during which essential reforms were neglected, setting the stage for the stagnation that now plagues the nation. Current polling reflects frustration with the status quo and, as elections approach, Germans hope for a new direction that will modernize the economy, address long-standing issues, and restore the country’s global standing.