German Economy

Germany needs immigration to sustain economy, says Bundesbank chief Nagel

Speaking to students at the New York University Stern School of Business, Nagel stressed that Germany "should have that openness when it comes to immigration"

German elections: Who are the top candidates & what are their priorities

Originally scheduled for September 28, the German elections were advanced following the dramatic collapse of Chancellor Olaf Scholz's three-party coalition government in November

Euro area 2-year yields set for largest weekly drop since September

Germany's rate-sensitive two-year bond yield, was down 81 basis points (bps) at 2.18% on Friday. It was set to end the week 16 bps lower in its biggest fall since the week of Sept. 23

Germany's economy shrinks for second consecutive year in 2024 amid election

The German economy, Europe's biggest, shrank for the second consecutive year in 2024, according to preliminary official figures released Wednesday weeks before an election in which the economy is the top issue. The Federal Statistical Office said that gross domestic product contracted by 0.2 per cent last year following a decline in 2023. The German economy has been battered by external shocks and homegrown problems, including red tape and a shortage of skilled labour, and politicians have been at odds over how to fix it. Chancellor Olaf Scholz's three-party coalition government collapsed in November when Scholz fired his finance minister in a dispute over how to revitalise the economy. That paved the way for an early election on February 23. Contenders to lead the next government have made contrasting proposals on how to inject new vigour into the economy.

Germany increases visa quota for Indian skilled workers by 350% to 90,000

Expressing optimism, PM Modi said it will enhance Germany's economic growth by addressing its demand for skilled labour and also strengthen the economic cooperation between the two countries

Trump presidency may harm Germany's economic growth amid trade war fears

The negative effects on EU GDP increase from 2025 to 2028, while the effects on US GDP are stronger in the first two years, with a GDP decline of 1.3 per cent with tariffs of 10 per cent

Germany's busiest airport opens again after climate activists block runway

A spokesperson for Frankfurt, a vital international transit hub and one of Europe's biggest airports, said around 140 flights had been cancelled out of 1,400 planned on Thursday

We want fair auto market but no dumping, urges Germany's Scholz in China

"At some point there will also be Chinese cars in Germany and Europe. The only thing that must always be clear is that competition must be fair," Scholz said

'One Nation, One Election' proposal likely to have German blueprint

Law Commission, in its 2015 report, proposed that a no-confidence motion, even if passed by a majority, shall remain ineffective unless a motion of confidence in a named individual is passed

German State Secy invites Indians to explore opportunities in Germany

Leonie Gebers emphasised the great potential of India and expressed Germany's interest in collaborating across different sectors

German business morale unexpectedly worsened in January, GDP contracts 0.3%

"The tentative revival of optimism last autumn has turned out to be very short-lived," said ING economist Carsten Brzeski, forecasting another shallow recession this year of -0.3%

German industry association expects economy to barely grow in 2024

Russwurm urged Germany's coalition parties to find an agreement and move forward, saying paralysis would be the worst of all scenarios

German economy shrinks 0.3%, costly energy, higher interest rates to blame

Germany's economy shrank 0.3 per cent last year as Europe's former powerhouse struggled with more expensive energy, higher interest rates, lack of skilled labour and a homegrown budget crisis. Europe's largest economy has been mired in stagnation since the last months of 2022 amid those multiple challenges. The International Monetary Fund expected Germany to be the worst-performing major developed economy last year, a major turnaround from its place as a model for how to expand when other nations were struggling. German's economy likely also shrank 0.3 per cent in the fourth quarter after stagnating in the third quarter, the Federal Statistical Office said on Monday in an initial rough estimate. Official figures for the last three months of 2023 are expected to be announced January 30. Meanwhile, there's an ongoing debate about why Germany has stalled. Energy intensive industries must pay higher natural gas prices after losing Russia's cheap supply following its invasion of Ukraine,

Amid Red Sea attacks, Tesla puts German factory production on hold

Tesla says it's temporarily halting most production at its German factory because of attacks in the Red Sea, a vital global shipping corridor. The electric vehicle maker said in a statement Thursday night that its factory near Berlin, which makes Model Y vehicles and batteries, will pause from Jan. 29 to Feb. 11. It's a fresh sign of how the hostilities in the Mideast are disrupting global manufacturing supply chains, with shipping companies reporting that they're being forced to reroute vessels carrying goods and components on the longer route around the southern tip of Africa. Analysts say the detour adds 10 days or more to the journey. The armed conflicts in the Red Sea and the associated shifts in transport routes between Europe and Asia via the Cape of Good Hope are also affecting production in Grnheide," Tesla said. The significantly longer transport times create a gap in the supply chains. The U.S. led airstrikes on Thursday against Yemen's Houthi rebels in response to their

Vivo exits German market after OnePlus, OPPO due to patent dispute

After OnePlus and OPPO, now smartphone brand Vivo has also exited the German market and said that its products are currently not available in the country

German economy shrank 0.2% in Q4 compared to Q3, worse than expected

Germany's economy shrank by 0.2 per cent in the fourth quarter compared with the previous three-month period, official figures showed Monday. The performance by Europe's biggest economy was worse than expected. Gross domestic product shrank for the first time since the first quarter of 2021 largely because of a decline in consumer spending, which had supported the economy in the first nine months of 2022, the Federal Statistical Office said. The drop followed GDP growth of 0.5 per cent in the third quarter and 0.1 per cent in the second quarter. The statistics office said in mid-January, before it had full December economic data, that the economy appeared to have stagnated in the fourth quarter. Monday's announcement prompted it to revise last year's full-year growth figure down to 1.8 per cent from the 1.9 per cent it initially reported. Germany's annual inflation rate rolled back from a peak of 10.4 per cent in October to 8.6 per cent in December, but galloping prices remain a ma

German PE firm acquires 80% stake in Mahindra-owned Peugeot Motorcycles

The Munich-based private equity holding company has a portfolio of 32 companies and has a presence across Europe

German economy to shrink by 0.2% in 2023, say economic advisers

The German government's panel of independent economic advisers forecast Wednesday that Europe's biggest economy will shrink by 0.2% next year. The five-member panel's report came after official figures late last month showed unexpected growth in the third quarter, thanks to private spending. But a weak winter, with gross domestic product declining in the last months of the year and in the first three months of next year, is still widely expected. Two consecutive quarters of negative growth is one technical definition of recession, but the 19-country euro area has a body that also uses a broader set of data including employment numbers and depth of the economic decline to determine when a recession occurs. The advisers' forecast of 1.7% growth this year and a decline of 0.2% in 2023 contrasts with a forecast at the end of March that German GDP would expand by 1.8% this year and 3.6% next year. It's still more optimistic than a forecast by the government itself a month ago, which ...

German economy sees unexpected growth in 3rd quarter; inflation up

The German economy grew in the third quarter, an unexpectedly positive performance powered largely by private spending, official figures showed Friday. But the immediate outlook for Europe's biggest economy remained gloomy, with inflation rising again in October. Gross domestic product expanded by 0.3% in the July-September period compared with the previous quarter, the Federal Statistical Office said. That followed a slight increase of 0.1% in the second quarter. The German economy managed to hold its ground despite difficult framework conditions of the global economy, with the continuing COVID-19 pandemic, supply chain interruptions, rising prices and the war in Ukraine, the statistics office said. The government said earlier this month that GDP was believed to have shrunk in the third quarter and was expected to decline again in the last three months of the year as well as the first three months of 2023 before beginning to recover. Two consecutive quarters of negative growth i

German economy sees unexpected growth in Q3 with 0.3% GDP expansion

The German economy grew in the third quarter, an unexpectedly positive performance powered largely by private spending, official figures showed on Friday. Gross domestic product in Europe's biggest economy expanded by 0.3 per cent in the July-September period compared with the previous quarter, the Federal Statistical Office said. That followed a slight increase of 0.1 per cent in the second quarter. The German economy managed to hold its ground despite difficult framework conditions of the global economy, with the continuing COVID-19 pandemic, supply chain interruptions, rising prices and the war in Ukraine, the statistics office said. The government said earlier this month that GDP was believed to have shrunk in the third quarter and was expected to decline again in the last three months of the year as well as the first three months of 2023 before beginning to recover. Two consecutive quarters of negative growth is one technical definition of recession. With energy prices high,