The German economy is set to continue shrinking in the first three months of this year, the country’s central bank has predicted, blaming uncertainty over government policy as well as transport strikes and weak consumer and industrial demand.
The Bundesbank said in its monthly report on Monday that “stress factors would probably remain in the first quarter”, adding that this meant “economic output could therefore decline slightly again”.
Germany’s economy shrank 0.3 per cent in both the fourth quarter and over the whole of 2023, making it the worst performing major economy in the world last year.
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