Germany's economy: recession is also looming in 2025 - alarming forecasts!

Germany's economy: recession is also looming in 2025 - alarming forecasts!

The gloomy economic situation in Germany is getting worse: According to a forecast by the IW Institute, the German economy will hardly emerge from the crisis in 2025. Gross domestic product (GDP) is expected to grow by just a meager 0.1 percent, after shrinking by 0.2 percent this year. Economy on your own? None, because private consumption remains weak and unemployment will rise, which Minister Robert Habeck recently confirmed in Berlin.

Criticism of the federal government

GERMANY HAS BEEN IN RECESSION FOR TWO YEARS IN A ROW - the last time this happened was in 2002 and 2003. The Federal Minister for Economic Affairs reported that the economic conditions are anything but positive. A lack of willingness to innovate is identified as one of the biggest challenges. The IW Institute also sees major difficulties and warns of the effects of Donald Trump's policies, which could put additional strain on the export-oriented German economy. The consequences could amount to up to 180 billion euros in economic output, which would further exacerbate the already tense situation World reported.

Habeck relied on a growth-promoting package from the traffic light coalition, which provides tax relief, work incentives and benefits to get the economy back on track. However, such measures remain fragile, especially given the ongoing structural problems. Inflation is expected to be 2.1 percent in 2025, which represents an additional burden for citizens, while employment in Germany is expected to fall by 0.1 percent and the unemployment rate could rise to 6.2 percent, the IW Institute also warned daily news reported these alarming trends.