Press release No. 019 of 15 January 2025
WIESBADEN - According to first calculations of the Federal Statistical Office (Destatis), the price adjusted gross domestic product (GDP) was 0.2% lower in 2024 than in the previous year. The decline in economic performance in Germany also amounted to 0.2% after adjustment for calendar effects. "Cyclical and structural pressures stood in the way of better economic development in 2024," said Ruth Brand at the press conference held in Berlin on Germany's 2024 gross domestic product. "These include increasing competition for the German export industry on key sales markets, high energy costs, an interest rate level that remains high, and an uncertain economic outlook. Against this backdrop, the German economy contracted once again in 2024," Brand continued.
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|---|
| 1.7 | 2.3 | 2.7 | 1.1 | 1.0 | -4.1 | 3.7 | 1.4 | -0.3 | -0.2 |
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|---|
| 1.4 | 2.2 | 3.0 | 1.1 | 1.0 | -4.5 | 3.6 | 1.5 | -0.1 | -0.2 |
Marked decline in manufacturing and construction, improved performance of service sector as a whole
After adjustment for price effects, whole economy gross value added fell by 0.4% in 2024, with significant differences in the performance of individual economic sectors.
In manufacturing, output was down and gross value added dropped significantly (-3.0%) compared with the previous year. In particular, key sectors like the manufacture of machinery and equipment or the automotive industry saw a marked decline in production. Production remained at a low level in energy-intensive industrial branches, which include the chemical and metal-working industries for example. In 2023, production had decreased considerably owing to the sharp rise in energy prices.
In the construction industry, the year-on-year decline in gross value added in 2024, at -3.8%, was even somewhat more pronounced. In particular, with construction prices and interest rates remaining high, fewer residential buildings were built. Building completion work also faced a drop in output. By contrast, the modernisation and new construction of roads, railways and pipelines led to an increase in the civil engineering sector.
While the service sector registered positive growth overall in 2024 (+0.8%), the performance of the individual branches varied. For example, gross value added in the aggregated economic sector of trade, transport, accommodation and food services stagnated. However, while the retail sector and providers of transport services each reported growth, the motor vehicle trade, wholesaling and food and beverage service activities experienced a drop in performance compared with the previous year. Gross value added of business services also stagnated. The information and communication sector, on the other hand, continued to grow (+2.5%). There was also a steady rise in the sectors of the economy that are closely linked to general government: apart from public administration itself, continued growth was also reported in the areas of education and public health. Taken together, the gross value added of these sectors increased substantially on the previous year (+1.6%).
Significant decline in gross fixed capital formation, final consumption expenditure supports GDP
Overall, gross fixed capital formation was down 2.8% compared with the previous year. Construction costs remained high and this had a negative impact on gross fixed capital formation in construction, which decreased by a price adjusted 3.5% in 2024. Residential construction saw the biggest decline, with investment in this sector dropping for the fourth consecutive year. In 2024, gross fixed capital formation in machinery and equipment declined even more than gross fixed capital formation in construction, dropping 5.5% year on year after adjustment for price effects.
Up by a price adjusted 0.3%, household final consumption expenditure only provided weak positive signals in 2024. The slowing pace of inflation and the pay increases received by many persons in employment were only able to encourage spending to a limited extent. The biggest increases in household final consumption expenditure (price adjusted) were in the area of health (+2.8%) and transport (+2.1%). By contrast, households spent considerably less on food and beverage service activities and accommodation services than in the previous year (-4.4%). In addition, less clothing and footwear were bought in 2024 than in 2023 (‑2.8%), after adjustment for price effects.
At +2.6%, the increase in price adjusted government final consumption in 2024 was much more pronounced than the increase in household consumption expenditure. The increase was particularly attributable to the notably higher social benefits in kind provided by the government. Social security funds spent more on hospital treatment, medication and care, for example. In the case of central, regional and local authorities, the increase in consumption was particularly due to changes in social legislation in the area of youth welfare and integration assistance.
The difficult economic climate in 2024 was also reflected in foreign trade. Exports of goods and services were down 0.8%. A decline in exports of electrical equipment, machinery and motor vehicles was one factor contributing to this result. By contrast, price adjusted imports were up slightly by 0.2% on the previous year, primarily due to increased imports of services.
Labour market hits new record high in 2024
On an annual average, 46.1 million persons were in employment in 2024 whose place of employment was in Germany. This was a further increase of 72,000, or 0.2%, from the previous year and a new record high for the number of persons in employment. However, the pace of employment growth slowed considerably and ultimately came to a halt towards the end of 2024. The employment gains observed in 2024 were entirely attributable to the service branches, particularly the branch of public services, education, health. By contrast, the number of persons in employment in industry and construction decreased.
General government deficit ratio (2.6%) remains at previous year's level
General government budgets recorded a financial deficit (net borrowing) of 113 billion euros at the end of 2024, according to provisional calculations. This was an increase of roughly 5.5 billion euros from 2023. State government, local government and social security funds recorded a higher financial deficit, mainly as a result of increased expenses for social benefits in kind and social benefits other than social transfers in kind. This was primarily due to higher expenditure for pensions. There was also a marked increase in expenditure for long-term care allowance and citizen's benefit. By contrast, central government was the only subsector to reduce its deficit. The discontinuation of the measures to reduce the impact of the energy crisis – mainly the brake on gas and electricity prices – at the end of 2023 had a particularly positive effect in this context. Measured as a percentage of GDP at current prices, Germany recorded a 2.6% deficit ratio in 2024. The ratio is therefore the same as in the previous year and remains below the 3% reference value of the European Stability and Growth Pact.
| 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|
| Total | -116.436 | -84.875 | -107.522 | -113.041 |
| Central government | -131.956 | -115.223 | -94.762 | -59.267 |
| State government | 6.773 | 16.764 | -10.127 | -27.114 |
| Local government | 6.312 | 4.808 | -11.668 | -15.920 |
| Social security funds | 2.435 | 8.776 | 9.035 | -10.740 |
| Net lending/net borrowing of general government, percent of nominal GDP | -3.2 | -2.1 | -2.6 | -2.6 |
GDP in 4th quarter of 2024 down on previous quarter according to results available
The current gross domestic product result for 2024 contains a first, very early estimate for the 4th quarter of 2024. As the data basis of this estimate is not as complete as that of the regular quarterly calculation, there is a higher degree of uncertainty. The results for the first three quarters of 2024 were also reviewed. According to the information available so far, GDP in the 4th quarter of 2024 fell by 0.1% on the previous quarter after adjustment for price, seasonal and calendar variations.
The Federal Statistical Office will publish the regular first estimate for GDP in the 4th quarter of 2024 on 30 January 2025. Detailed national accounting results will follow on 25 February 2025.
| 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|
| 1 Contributions to growth of price-adjusted GDP in percentage points. | ||||
| Change on the previous year in % | ||||
| At current prices | ||||
| Final consumption expenditure of households and NPISHs | 5.3 | 12.7 | 6.3 | 3.0 |
| Government final consumption expenditure | 6.6 | 6.1 | 4.1 | 5.3 |
| Gross fixed capital formation (GFCF) | 5.8 | 10.1 | 4.9 | -0.3 |
| D o m e s t i c u s e s | 6.8 | 10.6 | 4.2 | 2.9 |
| Exports | 16.1 | 15.4 | 0.4 | 0.1 |
| Imports | 18.2 | 24.1 | -3.6 | -0.1 |
| G r o s s d o m e s t i c p r o d u c t (GDP) | 6.6 | 7.5 | 5.9 | 2.9 |
| Gross national income | 7.5 | 7.8 | 5.7 | 2.7 |
| Net national income (factor costs) | 7.5 | 5.4 | 6.8 | 1.2 |
| Compensation of employees | 3.6 | 6.0 | 6.8 | 5.5 |
| Property and entrepreneurial income | 18.3 | 3.8 | 6.7 | -9.3 |
| Disposable income of households | 3.0 | 7.9 | 6.9 | 4.5 |
| Price adjusted | ||||
| Final consumption expenditure of households and NPISHs | 2.3 | 5.6 | -0.4 | 0.3 |
| Government final consumption expenditure | 3.4 | 0.1 | -0.1 | 2.6 |
| Gross fixed capital formation (GFCF) | 0.6 | -0.2 | -1.2 | -2.8 |
| GFCF in construction | -3.1 | -3.9 | -3.4 | -3.5 |
| GFCF in machinery and equipment | 3.5 | 4.5 | -0.8 | -5.5 |
| GFCF in other products | 7.0 | 2.6 | 4.7 | 3.9 |
| D o m e s t i c u s e s | 3.0 | 2.8 | -0.4 | 0.2 |
| Exports | 10.0 | 3.1 | -0.3 | -0.8 |
| Imports | 9.0 | 7.0 | -0.6 | 0.2 |
| Balance of exports and imports 1 | 0.9 | -1.3 | 0.1 | -0.4 |
| G r o s s d o m e s t i c p r o d u c t (GDP) | 3.7 | 1.4 | -0.3 | -0.2 |
| GDP per person in employment | 3.5 | 0.0 | -1.0 | -0.4 |
| GDP per hour worked by persons in employment | 1.3 | 0.1 | -0.6 | -0.1 |
| Gross value added, total | 3.8 | 1.7 | 0.3 | -0.4 |
| including: | ||||
| Manufacturing | 8.7 | 0.6 | 0.9 | -3.0 |
| Construction | -3.6 | -11.3 | -0.4 | -3.8 |
| Trade, transport, accommodation and food services | 1.4 | 5.4 | -1.4 | 0.0 |
| Information, communication | 8.6 | 0.5 | 3.7 | 2.5 |
| Business services | 9.1 | 3.3 | 0.5 | 0.0 |
| Public services, education, health | 1.4 | 4.5 | 1.5 | 1.6 |
| Other services | 1.0 | 16.9 | 2.0 | 0.9 |
More information:
The statement for the press conference on Germany's 2024 gross domestic product, which contains additional results, is available on the press conference webpage (only in German).
More detailed results on the 2024 GDP are contained in Fachserie 18 "Volkswirtschaftliche Gesamtrechnungen", Reihe 1.1 "Erste Jahresergebnisse" (only in German).
Other publications on national accounts and a detailed quality report can be found under "Publications" on the "National Accounts, Domestic Product" page.
These and other current national accounting results are also available in the GENESIS-Online database. Visualised updated results of national accounts can also be found in our interactive National Accounts Monitor for Germany at www.destatis.de/vgr-monitor-deutschland (only in German).
GDP data are also available on Dashboard Germany at www.dashboard-deutschland.de (only in German. In this data portal, the Federal Statistical Office brings together up-to-date indicators from official statistics producers and other data providers on the topics of the economy, finance, the labour market, construction, housing, energy and Ukraine. The portal additionally contains the Economic Pulse Monitor (only in German) tool for real-time economic monitoring.
