German Minister admits economy struggling as GDP set to contract

German Economy Minister Robert Habeck on Monday admitted that the country's economy is performing poorly, as a report suggested a new government forecast expects domestic product (GDP) to decline in 2024, reported dpa.

Habeck said in Berlin that economic data was being adjusted "downwards," appearing to confirm a report by the Süddeutsche Zeitung newspaper that GDP is now expected to drop 0.2% for the year, down from previous estimates of a 0.3% increase.

The minister is due to present the figures, which also include a forecast of 1.1% growth for 2025, on Wednesday.

Habeck said the coalition government's growth initiative would provide a stimulus to the German econoomy.

The proposal still requires approval from the German parliament.