The German economy is facing a critical phase in 2025, with an expected minimal growth of 0.1 percent. This marks a significant downward revision of forecasts, pointing to cyclical and structural causes. Geopolitical tensions, particularly the protectionist trade policy of the US under Trump, are heavily burdening the export-heavy German economy, especially as the dynamics are slowed by US tariff policies in the summer. These topics were discussed on Tagesschau with Klaus-Rainer Jackisch. At the same time, German companies are grappling with structural weaknesses, including intense competition from China and a decline in production in energy-intensive industries following the energy crisis. Political responses are evident in the presentation of the Spring Projection 2025 by Robert Habeck and the utilization of new debt leeway for necessary investments in defense, climate protection, and infrastructure. Whether these measures can solve the structural problems remains unclear.
30.04.2025