Ahead of the election on February 23, many German voters are deeply concerned about the economy – and for good reason. The German economy is in a recession and has been shrinking for two consecutive years. In fact, it is now about the same size as it was in 2019, even as some of its peers among the world’s advanced economies have experienced solid growth (on the left of the chart below).
This matters for voters, who have experienced stagnating real incomes and remain pessimistic – expecting real incomes to decline further.
