Germany revises GDP forecast, ministry sees signs of growth

The German Ministry of Economics has slightly raised its growth forecast for 2025 to 0.2 percent – previously, it had been assumed to be zero. For 2026, the ministry expects growth of 1.3 percent and for 2027, as much as 1.4 percent.

Europe's largest economy has been sluggish since the outbreak of the COVID-19 pandemic and the subsequent Russian war against Ukraine. Added to this are US tariffs and trade measures, which are hampering German exports.

According to the ministry's assessment, the new forecast signals the first signs of recovery, but at 0.2 percent, growth remains extremely low. Therefore, the focus should remain on promoting investment and strengthening domestic demand in order to secure and expand growth.

(reuters, sie)