The German economy will shrink by 0.2% in 2024, data from statistics office Destatis showed on Wednesday, marking the country’s second consecutive year of slowdown.

The decline was in line with expectations of economists polled by Reuters, according to data from London Stock Exchange Group. this European Commission with a group Germany’s leading economic institution Both men independently forecast that German GDP will fall by 0.1% in 2024.

Ruth Brand, head of Germany’s Statistics Office, said “cyclical and structural pressures” were holding back stronger economic development.

“These factors include increased competition in Germany’s export industry in key sales markets, high energy costs, persistently high interest rates and an uncertain economic outlook,” she said in a statement.

The German economy has Shrink 0.3% in 2023.

Destatis also released preliminary fourth-quarter gross domestic product (GDP) data on Wednesday, based on available information. Adjusted for price, seasonal and calendar changes, the economy shrank 0.1% in the three months to the end of December from the previous quarter. Destatis noted that a regular first reading of Germany’s fourth-quarter GDP will be released later this month.

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