Germany’s economy is on track to shrink for a second straight year

BERLIN (AP) — Germany’s government says its economy is on track to shrink for a second consecutive year. The German economy is Europe’s biggest. The outlook underlines the unpopular administration’s troubles as it heads into a difficult election year. The new forecast Wednesday that gross domestic product will shrink by 0.2% this year compares with the government’s prediction in April of 0.3% growth and brings it into line with economists who also have forecast a slight contraction. The government forecast growth of 1.1% next year and 1.6% in 2026. The economy shrank by 0.3% in 2023.