QIII-2024 QUARTERLY REPORT GERMANY
Economic lull persists GDP continues to fall in second quarter 2024
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Investment levels, weak since late 2022, remain low. In 2024 overall, we expect investment in plant and equipment to drop by six percent.
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German exports have still not recovered from their poor performance in 2023. We expect exports of goods and services to drop 0.5 percent in 2024 overall and imports to decrease 1.5 percent.
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Private consumption remains weak. Consumers are still reticent despite tangible rises in real incomes.
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The manufacturing sector is running out of orders. We anticipate industrial production to fall three percent in the current year. This would constitute the third consecutive drop in production.
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We still expect Germany’s gross domestic product to increase by 0.3 percent this year. The downward revisions in investment levels should be compensated by positive net exports.