Recession in the second quarter of 2025, that is, from the current month to June 2025, is waiting for the central bank her Germany (Vundesbank) in its monthly report, which was released today (24.4.25).
“It is not surprising that we are now waiting for stagnation, possibly even a slight recession, for this year,” Bundesbank chief Nagel said in an interview with Reuters on the sidelines of the Spring Synods of the International Monetary Fund (IMF) and the World Bank.
This would mean that the gross domestic product would be reduced for the third consecutive year – something that has never happened in the history of the Federal Republic. “Overall, the factors of uncertainty in the economy are very high and this leads to this slowdown in growth,” Nagel said.
However, the Bundesbank expects the economy will experience ups and downs in the first half of the year. “Economic production in Germany is likely to have increased slightly in the first quarter of 2025, but could be settled in the second quarter,” the monthly report said.
The underlying economic tendency remains “overall weak”. Trump’s duties are probably partly responsible for this. “Overall, the short -term prospects for export companies and industry remain a grim in view of US government tariff policy,” Bundesbank said.