Germany's Economic Outlook Dims

The outgoing German government has revised its economic forecast for 2025, now anticipating a period of stagnation. This adjustment marks a historic moment, as it would be the first instance of the German economy failing to grow for three consecutive years. Earlier projections in January had suggested a modest growth rate of 0.3%.

Looking Ahead to 2026

For the following year, 2026, the government has slightly adjusted its GDP growth forecast to approximately 1%, a minor decrease of 0.1 percentage points from previous estimates.

The Impact of Global Trade Policies

Sources indicate that the revised forecasts are largely due to the unpredictable trade policies and tariffs imposed by United States President Donald Trump. These actions have created a climate of uncertainty, leading German companies to delay investments.