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29 Jan, 17:33

German government lowers economic growth forecast for 2025 to 0.3%

The German government expects the situation to improve somewhat in 2026

BERLIN, January 29. /TASS/. The German government has lowered its economic growth forecast for the current year - it is now expected that Germany's GDP will grow by only 0.3% in 2025, Vice Chancellor, Minister for Economic Affairs and Climate Action Robert Habeck said.

In the fall, the German authorities expected the country's GDP to grow by 1.1% in 2025. According to Habeck, only minimal growth of 0.3% is expected. Germany, he said, is "stuck in stagnation" despite some positive changes. At the same time, he particularly stressed the uncertainty regarding the economic and trade policies of the new administration of US President Donald Trump.

The German government expects the situation to improve somewhat in 2026. The authorities expect GDP to grow by 1.1%. Private consumption is also expected to increase during the year. In the fall of 2024, the German government expected growth to be 1.6% in 2026.

The German economy is going through a serious crisis. Earlier, the Federal Statistical Office presented preliminary data, according to which Germany's GDP, taking into account price, seasonal, and calendar adjustments, fell by 0.2% last year compared to the previous year.