Germany's economy shrank for a second straight year in 2024, official figures showed Wednesday, with little hope of a speedy recovery as Europe's traditional powerhouse is also mired in political crisis.

Germany's economy shrunk for a second consecutive year in 2024, continuing its struggle with internal and external challenges.

Friedrich Merz, the chancellor candidate for the conservative Christian Democratic Union acknowledged the need for a “major effort” to revive the economy as his party pledges to return German growth to 2 percent over the next five years through changes to the welfare and tax systems.