A crash warning was just issued as things are tough all over the world.

Although Germany’s economy contracted by 0.3 percent in 2023’s fourth quarter, the 20-country Eurozone’s GDP neither shrank nor grew during the period, according to figures reported by Eurostat, the zone’s statistics office.

The office has not yet provided a figure for 2023’s overall economic result. Analysts expect it to be flat, Reuters reported.

The German economy’s stumble was due to its reliance on energy-intensive industries, such as chemical and auto manufacturing, and robust two-way trade with China. Energy prices remained high throughout last year after Russia cut the flow of gas into Europe and China’s growth spurt early in 2023 fizzled into stagnation.

Investment sagged in Germany’s construction industry and in machinery and equipment.

Germany’s weakness, and stagnation in France, were offset by growth in Italy and Spain.

After six consecutive quarters of little or no economic expansion, economists see the same for the Eurozone in 2024.

“The outlook for 2024 continues to be challenging amid faltering demand and increasing geopolitical tensions,” Diego Iscaro, chief European economist at S&P Global Market Intelligence, wrote in a note. “We think Eurozone activity will remain virtually stagnant during the first half of 2024.”…

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