Germany's economic outlook remains bleak, with stagnation expected for the final quarter of 2024 amid persistent industrial and construction slowdowns, Deutsche Bundesbank President Joachim Nagel said on Monday.

In his latest speech, Nagel stressed that ongoing trade uncertainties, particularly potential US tariff hikes following recent elections, pose significant risks to Germany's fragile economic recovery. Nagel highlighted structural issues amplifying the challenges. "As a nation heavily reliant on global trade, Germany is disproportionately affected by growing protectionism and economic fragmentation," he stated.

Commenting on the economy, Nagel also addressed long-term risks, including the rising costs of transitioning to a CO2-neutral economy, the shortage of skilled workers, and the energy prices in Germany.