Germany is suffering a mild recession and output across the whole of 2024 will be flat, according to a Bloomberg survey underscoring the malaise in Europe’s largest economy.

Analysts in the poll see gross domestic product shrinking 0.1 per cent in the third quarter, following a surprise contraction of that magnitude in the second. A month ago, these analysts still forecasted stagnation between July and September.

Their full-year projection marks a downward revision from the 0.1 per cent expansion previously envisioned. However, projection is a tad more optimistic than the government, which last week slashed its forecast to a contraction of 0.2 per cent.

Germany’s struggles are once again in the spotlight, with retrenchment by some of its top industrial firms adding to the gloom. The weakness is largely down to the cutoff of Russian energy supplies, disappointing export demand from China, problems among carmakers and a dearth of skilled workers.

A contraction in 2024 would be only the second time GDP declined in consecutive years since West and East Germany were reunified in 1990. Last year Germany was the only Group of Seven economy to shrink, by 0.3 per cent.