Germany's Economic Challenges: A Nation in Recession

Germany's economy has contracted for two consecutive quarters, sparking recession fears amid political uncertainty ahead of a snap election. Factors such as high energy costs, trade tensions, and uncertain economic prospects have contributed to its stagnation, prompting concerns over potential further decline.

Germany's economy contracted more than anticipated in the final quarter of last year, fueling recession fears as political uncertainty looms ahead of a snap election.

Preliminary data indicates a 0.2% decrease in GDP, surpassing analysts' expectations. Germany and France, the euro zone's two largest economies, both experienced contractions.

Commerzbank's Joerg Kraemer highlights key challenges: high energy costs and increasing competition. Government forecasts suggest minimal growth, with the economy remaining a top voter concern in the upcoming election.

(With inputs from agencies.)