The OECD predicts Germany will experience lower economic growth in 2024 than almost all other industrialized countries and sees the budget crisis as a new economic risk. Gross domestic product is expected to increase by only 0.6 percent due to weak exports, according to the “Economic Outlook” published on Wednesday by the Organization for Economic Co-operation and Development (OECD). Only in the neighboring Netherlands is the increase likely to be even lower at 0.5 percent.
For comparison: the average growth of the 38 industrialized nations united in the OECD is estimated at 1.4 percent in 2024. In 2025, Germany is expected to remain below the average of 1.8 percent at 1.2 percent. In the coming year, Europe’s largest economy is expected to shrink by 0.1 percent, while the OECD countries as a whole can expect growth of 1.7 percent on average. “The German economy is currently in a difficult phase,” OECD economist Isabell Koske told the Reuters news agency. “The energy crisis hit Germany more than other countries because industry plays a more important role in this country and dependence on Russian gas was much higher than in other countries.” High inflation has also reduced the purchasing power of households and thus affected consumption. “The budget crisis is also unsettling companies and consumers,” said Koske.