Germany cuts the expectations of economic growth before the February elections

The German government reduced its gross forecast of the domestic product on Wednesday for only a growth of 0.3% in 2025.

The last estimation of GDP is very low by an October projection of a 1.1% growth this year, but widely in line with the forecasts of other economic organizations. The International Monetary Fund at the beginning of this month reduced its perspective And now it sees a 0.3% growth for the German economy this year, while federal bundesbank in December saying He anticipated that GDP increases by 0.2% during the period.

In contrast, the German industry association on Tuesday forecast The economy of the country will get 0.1% in 2025, in what would be the third consecutive annual decrease.

Annual GDP figures Launched earlier this month showed that Germany’s economy contracted 0.2% in 2024, after 0.3% was already reduced in the previous year. The quarterly GDP figures have also been slow, but so far a technical recession has been avoided, which is characterized by two consecutive contraction quarters.

It is likely that the national economy initially only shows weak development this year due to the continuous geopolitical uncertainty and the lack of clarity about the economic and fiscal direction of the new government, said the German Ministry of the economy and the climate in a statement that accompanies to its 2025 economic report.

It came that the economy will then resume rhythm as inflation falls, real income increases and economic conditions become clearer.

Germany goes to a federal election on February 23, which takes place earlier than originally planned after the country. The ruling coalition separated In November.

Minister of Finance of Haccimiento Jörg Kukies’ Comments to CNBC last weekThe Minister of Economy and Climate, Robert Habeck, said in a statement that Germany suffers from structural problems. He pointed out a shortage of qualified workers and workers, lush bureaucracy and weak investment.

A preliminary reading of GDP from the fourth quarter of Germany will leave Thursday. The country’s statistics office earlier this month said that, according to the information available at that time, the economy retired at 0.1% in the three months until the end of December.

Wednesday’s economic report also linked the inflation established to average 2.2% this year. The German consumer price index had fallen below the 2% target of the European Central Bank at the end of summer, but since then it has increased again.

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