Germany Faces Economic Woes: GDP Declines Again, Political Turmoil Sparks Early Election Amid Coalition Collapse.

Germany's economy contracted for the second consecutive year in 2024, with a 0.2% decline in GDP following a downturn in 2023. The economic challenges stem from external shocks and domestic issues like bureaucratic hurdles and a skilled labor shortage. Political disagreements on economic revitalization led to the collapse of Chancellor Olaf Scholz's coalition government in November after he dismissed the finance minister. This political upheaval has prompted an early election on February 23, with candidates offering differing strategies to rejuvenate the economy.