Europe’s biggest economy shrank last year as Germany struggles with multiple crises

FRANKFURT, Germany (AP) — Germany’s economy shrank 0.3% last year as Europe’s former powerhouse struggled with more expensive energy, higher interest rates, a lack of skilled labor and a homegrown budget crisis. Europe’s largest economy has been mired in stagnation since the last months of 2022 amid those multiple challenges. The International Monetary Fund expected Germany to be the worst-performing major developed economy last year, a major turnaround from its place as a model for how to expand when other nations were struggling. The Federal Statistical Office said Monday in an initial rough estimate that the economy likely also shrank 0.3% in the fourth quarter after stagnating in the third quarter.