Gross Domestic Product (GDP)
In the first quarter of 2025, the German GDP adjusted for price, season, and calendar increased by 0.4%, indicating a slight recovery in the economy. Forecasts from the ifo Institute suggest a growth of 0.2% for the entire year of 2025, implying that while the recession is being overcome, growth remains moderate. Despite this recovery, economic performance remains at the level of late 2019, marking the sixth year of stagnation.
Corporate Figures and Industrial Production
The German industrial production has shown a downward trend since late 2017 and is currently over 15% below that value. Especially, the automotive industry is struggling with losses of over a quarter due to tariffs and strong competition from Asia. Only the pharmaceutical industry shows resilience to these trends. This week, numerous quarterly figures are expected that could shed light on the current business situation of companies.
Weekly Activity Index (WAI)
The WAI, which measures real economic activity, was at -0.3 in calendar week 20, indicating a slight decline in economic activity. Additionally, the trend-adjusted economic activity in the weeks leading up to May 18 was 0.3% lower than in the previous thirteen weeks.
Overall, markets face challenges and opportunities, influenced by the release of important economic data and quarterly figures. The slight recovery of the GDP and the ongoing industrial challenges could significantly impact investment decisions.