Germany has lowered its growth forecast for 2025 due to political turmoil and new challenges from abroad.
The German government has revised its economic growth forecast for 2025 down from 1.1% to 0.3%. Outgoing Economy Minister Robert Habeck noted that uncertainty is heightened by geopolitical risks, particularly those linked to the possible return of Donald Trump, including potential tariffs on European goods.
On February 23, Germany will hold early elections following the collapse of the ruling coalition in November. In addition to short-term difficulties, the German economy faces deeper structural challenges, the minister said, citing investment shortages and excessive bureaucracy as key factors hindering business development.
