Germany Lowers 2025 Economic Forecast Amid Persistent Challenges
BERLIN, Germany - The German government has revised its economic growth forecast for 2025 to a mere 0.3%, down from the previous projection of 1.1% in October. This comes after the country's economy declined for two consecutive years.
The sluggish growth has been attributed to global economic shifts and structural challenges within Germany, including a shortage of skilled labor, bureaucratic hurdles, and insufficient investment.
Despite averting an energy crisis after Russia's invasion and curbing inflation, Vice Chancellor Robert Habeck, who also serves as the economy minister, acknowledges that Germany faces deep-seated structural issues.
The ongoing uncertainty surrounding U.S. economic policy and Germany's post-election trajectory is further dampening investor and consumer sentiment.
The Federation of German Industries (BDI) has painted an even bleaker picture, forecasting a 0.1% economic contraction for the year. The BDI's head, Peter Leibinger, criticizes the government for delaying reforms and investments, contributing to the current stagnation.