German central bank warns of recession, citing strikes
February 19, 2024
The German central bank, the Bundesbank, warned on Monday that a technical recession was possible by the end of the first quarter of 2024, especially given recent strikes and their impact on infrastructure such as public transport and airports.
The Bundesbank said that “it cannot be ruled out that the various strikes, among other places in areas such as rail and air transport, reduce productivity.”
The next round of strikes scheduled for Tuesday this week will affect German airports, with Lufthansa ground staff from the Verdi union stopping work.
Germany’s gross domestic product contracted by 0.3% year-on-year in the final quarter of 2023, as well as declining throughout the entire year combined.
“With the second consecutive [quarterly] reduction in economic performance, Germany’s economy would find itself in a technical recession,” the Bundesbank said.
Source: DW
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