German economy set to sink deeper into recession: DIHK

Germany's Chamber of Commerce and Industry (DIHK) forecasted a decline in economic output of 0.5 percent for 2024 on Thursday, indicating the country's economy to slip deeper into recession, reported Xinhua.

Last year, Germany's gross domestic product fell by 0.3 percent. After the structural crisis in the early 2000s, this is only the second time in post-war history that economic output has fallen in two consecutive years, DIHK said.

"This is a clear alarm signal that Germany and Europe must take seriously," warned DIHK Managing Director Martin Wansleben. "The structural problems continue to weigh on the economy."

The business risks for companies "remain at a high level," DIHK said. More than half of German companies worry about energy and raw material prices, the shortage of skilled workers, domestic demand, and labor costs, according to a survey among more than 27,000 companies across various sectors.