Bundesbank: Downgrades German growth forecast in 2025 to just 0.2%

Its economy Germany it will hardly grow in 2025 after contracting again this year, according to its new forecast Bundesbankas reported in a Bloomberg article.

Germany’s gross domestic product will contract by 0.2% in 2024, according to the Bundesbank, downgrading a June forecast of 0.3% growth. Output will expand by just 0.2% in 2025, instead of the 1.1% previously forecast, and could even fall if US trade tariffs are implemented.

“The German economy is not only struggling with persistent economic headwinds, but also with structural problems,” said Bundesbank President Joachim Nagel, highlighting the industrial sector in particular. “The labor market is also now responding noticeably to the prolonged weakness in economic activity.”