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Germany s economy: Europe s biggest economy shrank last year as Germany struggles with multiple crises

Germany s economy shrank 0.3% in 2023 due to expensive energy, lack of skilled labor, and a budget crisis. The country has been facing stagnation since late 2022 and the IMF predicted Germany to be the worst-performing developed economy. Energy-intensive industries faced higher natural gas prices, inflation deterred consumer spending, and a global manufacturing slowdown affected the factory sector.

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