The German economy remains trapped in a deep crisis driven by economic and structural challenges. A GDP growth of only 0.1 percent is expected for the year 2025, which is nearly tantamount to stagnation. This forecast has been revised downward by 0.7 percentage points since autumn 2024. Key factors include the protectionist US tariff policy, which weakens the export-oriented German economy, as well as ongoing uncertainties due to the Ukraine conflict. Russia’s recent actions following a new US peace proposal underscore the geopolitical tensions. Additionally, German companies are under pressure from Chinese competition and the aftermath of the energy crisis, which has decimated energy-intensive production. Demographic issues and bureaucratic hurdles exacerbate the structural deficits. Nevertheless, a financial constitution reform has created new borrowing opportunities that could be used for investments in defense, climate protection, and infrastructure. On April 24, Economic Minister Robert Habeck presented the Spring Projection 2025, providing further insights into economic development. Regular updates on the economic situation are constantly available in the business news.
29.04.2025