Germany’s Exports Decline Sharply in Q4 2024 (02.25.2025)

Germany experienced a considerable downturn in exports during the fourth quarter of 2024, with goods and services declining by 2.2% compared to the previous quarter.

This marked the sharpest drop since Q2 2020, primarily driven by a 3.4% decline in goods exports. Imports, on the other hand, increased by 0.5%, supported by a notable 4.2% rise in services.

Investment and Consumption Trends

Investments in machinery and equipment fell by 0.3%, reflecting weaker industrial demand, while construction investments grew by 1.0%, benefiting from favorable weather conditions. Final consumption expenditure recorded a modest growth of 0.2%, with government spending (+0.4%) surpassing household spending (+0.1%).

GDP and Sector Performance

Germany’s GDP contracted by 0.4% year-on-year, though after adjusting for calendar effects, the decline was -0.2%. The manufacturing sector saw a sharp 3.5% drop, while construction contracted by 3.9%. Despite these setbacks, the service sector remained resilient, particularly in public services, education, and health, which grew by 2.5%. Employment remained stable at 46.3 million, though labor productivity per hour worked declined by 1.1%.

Comparison with Other Economies

Germany’s economic downturn was more pronounced than in other major European economies. While Spain and the EU experienced slight growth, Italy stagnated, and France recorded a similar contraction. Meanwhile, the U.S. economy outperformed Europe, expanding by 0.6% quarter-on-quarter and 2.5% year-on-year.

Source: Eurostat

Latest Analysis

U.S. Jobs Market Shows Growing Fatigue

The latest Bureau of Labor Statistics report reveals a softening labor market as 2025 concludes. Total nonfarm payrolls grew by a modest 64,000 jobs in November, following an October loss of 105,000. This indicates that employer demand is no longer as strong as it was earlier in the economic cycle.

Detail

Central Bank Signals Keep Assets on Edge (17.12.2025)

Japan’s 10-year government bond yield held near 1.96%, close to an 18-year high, as solid economic readings reinforced expectations that the Bank of Japan could raise rates this week, highlighting a continued shift toward tighter policy.

Detail

China’s Vanke Nears Default on $50 Billion Debt

China Vanke, long considered one of the most resilient major developers amidst the country's severe property downturn, is now facing escalating debt pressure and growing risks of default. The sharp decline in its bond prices signals a potential turning point in China’s ongoing real estate crisis.

Detail