The economy of Germany, Europe's largest economy, is facing a mild recession. Analysts forecast a 0.1% contraction in gross domestic product in the third quarter, confirming concerns that arose after an unexpected decline in the second quarter. Despite the fact that previously experts expected stagnation in the period from July to September, they now predict a decline in GDP for the whole year. This is a significant change from previous forecasts, when growth of 0.1% was expected. The German government estimates a 0.2% decline in GDP this year. Such a scenario would be only the second time that Germany's GDP has fallen in several consecutive years since the country's reunification in 1990. Unlike other G7 countries, Germany in 2023 was the only country whose economy showed a decline of 0.3%. In 2025, analysts expect the economy to grow by 0.8%, which, nevertheless, is lower than the previous forecast of 1%.
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