German economy in the crisis: forecasts for 2025 dark than ever!

German economy in the crisis: forecasts for 2025 dark than ever!

The dark future of the German economy is sealed: forecasts indicate that the country could only experience minimal growth of 0.1 percent in 2025 after gross domestic product (GDP) has already shrunk by 0.2 percent this year. Experts from the Institute of German Economy (IW) warn of a "structural economic crisis" that makes companies difficult in particular in the industrial sector and in the construction industry. Private consumption also remains under pressure, although the real income has risen, reports Merkur . The uncertainties by the geopolitical tensions, including the approaching trade conflicts with the USA, contribute to the negative mood.

crisis forecast and stagnation

The "economic sorts" have even further revised their growth forecast and expect that the German economy could only increase by 0.4 percent in the coming year. This is a dramatic decline compared to previous estimates and shows that the economy continues to suffer from economic and structural problems, as can be seen from the annual report. The uncertainty about the political situation, especially after the failed coalition in Germany, could slow down further investments, as well as Tagesschau This situation could lead to a decline in employment of 0.1 percent, while the unemployment rate could increase up to 6.2 percent.

Recreation seems far away, since the international situation and higher inflation also slow down the willingness to invest of the companies. The OECD has expressed similar concerns and only slightly raised the global growth forecast for 2025, which also illustrates the already difficult situation for Germany. The Federal Government is required to increase future -oriented public expenditure and to make necessary market adjustments to get the economy back on course.