Suche
Mein Konto
Stagnant economy: Germany's growth is on the brink!
The German economy is stagnating in Q3 2025. Inflationary pressure and weak exports are slowing growth, while forecasts point to a slight increase.
Stagnant economy: Germany's growth is on the brink!
The German economy is showing signs of stagnation in the third quarter of 2025. How daily news reported, gross domestic product (GDP) remained unchanged compared to the previous quarter. Forecasts indicate slight growth of around 0.2 percent in the final quarter, which could mean that Germany will narrowly miss its third year without growth in 2025 as a whole.
Weak exports are slowing the economy, with exports of goods and services falling by 0.7 percent. Higher US tariffs and a weak Chinese market are putting considerable pressure on the export economy. At the same time, investment activity in machinery, equipment and vehicles recorded an increase of 1.1 percent in the period from July to September. Nevertheless, private consumption suffers from inflation; Households spent 0.3 percent less than in the previous quarter, and surveys show consumers plan to spend less in the upcoming holiday season.
Overview of the labor market
The labor market is under pressure, particularly in the automotive industry, where almost 50,000 jobs were lost in the last twelve months. The autumn recovery on the labor market remained weak and the number of unemployed could rise to over three million in the winter months. This worrying development has caused the unemployment rate in Germany to rise ZDF today emphasized. In addition, the number of jobs advertised is falling, which further clouds the prospects for a recovery.
At the Employers' Day, leading politicians, including Chancellor Merz, will discuss how Germany can regain its economic strength. The German economy has experienced a recession over the past two years and there are legitimate concerns about Germany's competitiveness. Federal Economics Minister Katherina Reiche speaks of the challenges resulting from international upheavals, particularly from the US customs policy under Trump.
The forecasts for the future
The forecasts for 2026 point to an end to the doldrums, supported by government investments in infrastructure and defense. The federal government is planning 271 billion euros in the special fund for infrastructure and climate neutrality by 2029, including 133 billion for measures that have already been planned. Despite these measures, however, assessments are cautious; It is predicted that almost half of the funds will not generate any additional economic stimulus.
As far as developments in the overall economic sector are concerned, this indicates Statista points out that Germany is in a generally difficult economic situation. The last significant GDP reduction before 2020 took place during the Corona crisis. In addition, geopolitical tensions, such as the Ukraine conflict, and deteriorating domestic demand due to restrained corporate investment are further critical challenges for the German economy.
Overall, economic institutes expect growth rates of between 0.1 and 0.2 percent for 2025 and between 0.8 and 1.7 percent for 2026. The federal government's ability to manage the economy and respond to external challenges will be crucial to Germany's future economic stability.