A surprising leap in the German economy

Industrial demand in Germany increased suddenly in January 2024, when the Federal Statistics Office in Wiesbaden announced that the requests in the manufacturing sector increased by 6.9% compared to the previous month, exceeding the expectations of analysts who were expecting 2%.

This sudden increase came after a noticeable decline in the previous months, as industrial demand in November recorded a decrease of 5.2%, and in October 2024 a decrease of 1.5%. Despite the monthly increase in December, industrial demand witnessed a 3% decrease compared to the previous year 2023.

The development of the annual demand in December also recorded an unexpected improvement, as it declined by 6.3%, while expectations indicate a decrease of 10.5%.

The decline in the industrial sector is one of the main reasons for economic weakness in Germany, as the gross domestic product of the largest economy in Europe for the second year in a row in 2024. The German government expected a slight growth in 2025, after it had expected last fall by 1.1%. (Russia today)