The Minister of Economy and Climate Action and the candidate for the Green Chancellor of the Green Robert Habeck arrives at the weekly meeting of the Federal Government’s cabinet on January 29, 2025 in Berlin, Germany.
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On Wednesday, the German government reduced its gross domestic product intended for only 0.3% growth in 2025.
The latest estimate of GDP has been abruptly reduced from the October screening of 1.1% of growth this year, but widely in accordance with the forecasts of other economic bodies. International Monetary Fund earlier this month has reduced its outlook And now this year sees 0.3% growth for the German economy, while the federal Bundesbank in December said He expected GDP to increase by 0.2% over the period.
In contrast, the German industry association on Tuesday prognosis The country’s economy will contracted by 0.1% at the age of 2025, in what would be the third annual fall in a row.
Annual GDP figures Posted earlier this month showed that the German economy contracted 0.2% in 2024, after it had already decreased by 0.3% in the previous year. Three -month data GDP have also been slow, but the technical recession has been avoided so far, which is characterized by two consecutive quarters of contraction.
The domestic economy is likely to show poor development this year only because of continuous geopolitical insecurity and lack of clarity of the economic and fiscal direction of the new government, the German Ministry of Economy and Climate said in a statement that accompanied the 2025 economic report.
It predicted that the economy would then execute the pace that inflation falls, real revenues grow, and economic conditions become clearer.
Germany embarked on federal elections on February 23, which takes place earlier than originally planned after the country The ruling coalition fell apart in November.
Echo Finance Minister Jörg Kukies’ CNBC comments last weekEconomy and Climate Minister Robert Habeck said in a statement that Germany is suffering from structural problems. He pointed out the lack of workers and qualified workers, lush bureaucracy and poor investment.
The preliminary reading of the German GDP is coming out on Thursday in the fourth quarter. The Statistics Office in the country earlier this month said that, based on the information available at that time, the economy withdrew by 0.1% in three months by the end of December.
The economic report on Wednesday also recorded inflation as an average of 2.2% this year. The German consumer prices index returned below the goal of 2% of the European Central Bank in late summer, but since then it has increased again.
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