stagnation
Federal government wants to reduce the economic forecast again
After two years of recession in a row, no turn is expected in the current year. The German economy cannot get off the spot.
The executive federal government wants to reduce its economic forecast again. As the “Handelsblatt” reported, citing government circles, a stagnation of the gross domestic product awaits you in the current year. In January, the government had expected an increase of 0.3 percent, now 0.0 percent awaits it. The report was confirmed to the German Press Agency in government circles. The outgoing Federal Minister of Economics Robert Habeck (Greens) will present the spring process in Berlin this Thursday.
It was only in January that Habeck screwed the growth expectations for 2025 down when the annual economic report was presented. At that time, a mini growth of 0.3 percent was expected for the current year. Last autumn, the government forecasted a gross domestic product of 1.1 percent.
New government wants to boost economy
The German economy is determined after two years of recession in a row in the crisis. The expected new coalition of the Union and SPD has announced extensive measures such as better depreciation conditions and a reduction in energy prices to boost the economy.
According to “Handelsblatt”, the federal government expects growth by one percent for 2026. In January, Habeck expected economic growth of 1.1 percent for 2026.
The customs policy of US President Donald Trump provides great uncertainty about the economic development. Trump had announced two weeks ago to grant many states – including the EU – a break from certain tariffs for 90 days. However, a previously in force of ten percent for all countries remains during the break. There are special tariffs on steel, aluminum and cars. According to government circles, this is also the basis for the new forecast of the federal government
dpa
Source: Stern
