German economy minister confident country will overcome slump

German Economy Minister Robert Habeck says he remains optimistic that Europe's largest economy will find a way out of its current woes next year, after presenting revised figures that forecast gross domestic product (GDP) is set to shrink by 0.2% this year.

"Germany is a country full of strengths," Habeck said.

While the economic framework was not satisfactory at the moment, "we will free ourselves from them and work our way out," the minister, from the Greens, said.

Habeck stressed that Germany was home to innovative medium-sized companies including world market leaders, well-trained specialists and a vibrant start-up scene.

Germany's GDP is expected to decline by 0.2% in 2024, according to the revised government forecast, meaning Europe's largest economy is on course for recession.

This is down from previous estimates of 0.3% growth.

For 2025, Habeck expects GDP to increase by 1.1%, slightly more than the government's prediction of 1% for 2025 from earlier this year.

In 2023 as a whole, the economy shrank by 0.3%.