KEY POINTS
  • Germany's economy has been struggling and the latest data has provided little hope for improvement.
  • Economists say the worst may soon be over, but are still not hopeful about economic growth in 2024 and suggest the country may enter a technical recession this year.
  • Headwinds include a slowdown of global trade, higher energy prices, and national and international political uncertainty.
Federal Chancellor Olaf Scholz (SPD, r-l), Robert Habeck (Alliance 90/The Greens), Federal Minister for Economic Affairs and Climate Protection, and Christian Lindner (FDP), Federal Minister of Finance, follow the debate at the start of the budget week.

Good news has been sparse for the German economy. And the latest economic data has not done much to change this.

A few key 2023 data points, namely factory orders, exports and industrial production, were out last week and indicated a weak end to the year that saw questions about Germany being the "sick man of Europe" resurface.