section_path: Crisis/GDP
section_name: GDP
paragraph_text: GDP
  
  German GDP declined by 0.4% from October to the end of December 2022 due to the energy crisis brought on by sanctions against Russian gas and significant price increases. Preliminary data from the German Federal Statistics Office showed that "the economy unexpectedly contracted by 0.1% in the second quarter of 2024", reversing the 0.2% growth of first quarter and missing 0.1% expansion forecasts. The German economy had also contracted by 0.1% on a year-on-year basis, causing the economy to suffer five consecutive quarters with no growth.
  
  Germany's regulatory environment was a subject of ongoing discussion. Since the 1980s, various German governments had pledged to reduce bureaucratic burdens and promote investment. However, progress in this area was limited. The situation was further complicated by European Union regulations, which some economists argued created additional administrative challenges for businesses.
  
  The European Union's push for its Green Deal, aiming to achieve climate neutrality by 2050, strongly influenced economic discussions in Germany. Some economists expressed skepticism about the growth potential of green technologies and argued that decarbonization efforts, while important, might not necessarily drive economic growth. Key issues identified as hindering Germany's economic performance included the declining competitiveness of German industry over the preceding decade, excessive bureaucracy and regulatory burdens, the need for digitization in government agencies, and a skilled worker shortage.