German economic crisis (2022–present)

Common card · No. 292859

Since 2022, Germany's economy has experienced a downturn that marked a dramatic reversal of its previous "labour market miracle" period of 2005–2019. The country, which had been considered to be Europe's economic powerhouse in prior decades, became the worst-performing major economy globally in 2023 with a 0.9% contraction, followed by further 0.5% contraction in 2024 leading to recession. In 2025 however the German economy registered a small increase. The IMF projects a growth rate of 0.8% for 2026. Several economists, business figures, and other experts expressed concern that Germany's economic downturn could cause the nation to reclaim its reputation as the "sick man of Europe" from the 1990s. This decline was attributed to multiple factors: A lack of urgency in diversifying its energy supply before 2022 leading to increased energy prices (coinciding factors include the complete cessation of gas imports from Russia from 2022 onwards, its nuclear energy phase-out with the last plants...

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