Germany revises 2025 growth forecast down to 0.3% amid ongoing structural challenges

The uncertainty surrounding US trade policy post-Trump is partly to blame for Germany’s economic slowdown, said Economy Minister Robert Habeck on Wednesday 🇩🇪.

The German government has revised its 2025 economic growth forecast down to just 0.3%, a significant drop from the earlier projection of 1.1% made in October 📉. This marks a troubling trend as Germany has seen little meaningful growth in the past four years, grappling with global economic shifts and its own structural challenges. Preliminary data showed a 0.2% contraction in GDP last year, following a 0.3% decline in 2023 📊.

Export-driven economies, like Germany’s, have been hit particularly hard 🌍. With the early German parliamentary election set for 23 February, the economy remains a key issue in the campaign, sparked by Chancellor Olaf Scholz’s coalition collapse in November over how to revitalize the economy 🗳️.