Germany's economy: Removal also threatens 2025 - alarming forecasts!

Germany's economy: Removal also threatens 2025 - alarming forecasts!

The dark economic situation in Germany continues to come to a head: According to a forecast of the IW Institute, the German economy will hardly come out of the crisis in 2025. The gross domestic product (GDP) is expected to grow only by a lean 0.1 percent after it has shrunk by 0.2 percent in the current year. Economy on your own? None, because private consumption remains weak, and unemployment will increase what the Minister Robert Habeck recently confirmed in Berlin.

criticism of the federal government

Germany has already been in the recession for two years in a row - the last time this happened in 2002 and 2003. The Federal Minister of Economics reported that the economic framework conditions are anything but positive. A lack of willingness to innovate is identified as one of the greatest challenges. The IW Institute also sees great difficulties and warns of the effects of Donald Trump's politics, which could also burden the export-oriented German economy. The consequences could make up to 180 billion euros in economic output, which would further tighten the already tense situation, such as Welt reported.

Habeck rely on a growth-promoting package of the traffic light coalition, which provides for tax reliefs, work incentives and discounts to get the economy back on track. Nevertheless, such measures remain fragile, especially against the background of the continuing structural problems. Inflation is expected to be 2.1 percent in 2025, which is an additional burden for citizens, while employment in Germany is supposed to drop by 0.1 percent and the unemployment rate could increase to 6.2 percent, the IW Institute continued, and also Tagesschau reported of these alarming tendencies.