Economy
End of the crisis? KfW is becoming more confident about economy
The sponsoring bank sees light again at the end of the tunnel – the economic upswing could begin at the end of the year. This is also due to the fact that companies put the US tariffs away better than expected.
According to the State Funding Bank KfW, the long crisis of the German economy will soon come to an end. It expects slight growth for the current year – also because companies dealt with the trade dispute with the USA under President Donald Trump better than expected.
For 2025, KfW chief economist Dirk Schumacher now expects slight economic growth of 0.2 percent instead of stagnation, as the support bank in Frankfurt reports. For the coming year, KfW Research will then assume that it is more than previously expected to have a price -adjusted economic growth of 1.5 percent.
The German economy will only easily grow in the current quarter, but then the upward dynamics should gradually increase. “The tailwind should outweigh for the German economy at the end of the year,” said Schumacher. “As early as the fourth quarter, a first economic boost can be expected from the federal investment offensive.”
Trump’s tariffs can be removed?
This indicated early indicators such as increasing credit demand for companies and households. “Companies seem to be able to cope with the significant US volumes since spring 2025.”
Many economists expect a thrust for the German economy with the federal government’s loss of billions of defense, infrastructure and climate protection. The fiscal impulse of the federal government is “even faster and larger than expected,” said Schumacher.
With its estimate, the KfW is not alone. Other research institutes and the Bundesbank also consider easy growth to be possible this year and then a clear plus in 2026.
dpa
Source: Stern
