The arrival of the Minister of Labor and Climate and the Candidate of the Green Party, Robert Habik, arrives at the meeting of the weekly Federal Cabinet on January 29, 2025 in Berlin, Germany.
Sean Gallup Getty Images News | Gety pictures
On Wednesday, the German government reduced the expectations of total local products to only 0.3 % in 2025.
The latest gross domestic product estimates sharply decreased from October dropping 1.1 % of growth this year, but is widely in line with predictions of other economic bodies. The International Monetary Fund was reduced earlier this month Expectations Now you see 0.3 % growth for the German economy this year, while He said GDP was expected to increase by 0.2 % during this period.
On the other hand, the German Industry Association on Tuesday Climate The country’s economy will reduce 0.1 % in 2025, while the third annual decrease will be in a row.
The annual GDP numbers that were released earlier this month showed that Germany’s economy contracted 0.2 % in 2024, after already reduced 0.3 % in the previous year. The semester gross domestic product numbers were also slow, but so far the artistic recession, which has a quarter of successive shrinkage, has been avoided.
The German Ministry of Economy and Climate said in a statement accompanying its economic report for the year 2025 that the local economy is likely to show a weak development this year only due to the continued geopolitical uncertainty and the lack of clarity on the economic and financial trend of the new government. .
It is imagined that the economy will then get a pace with low inflation, and the high real income and that economic conditions become more clear.
Germany is heading to federal elections on February 23, which is taking place earlier than it was originally planned after the separation of the ruling coalition in the country in November.
Finance Minister Juerg Cookies’ comments on CNBC last week, Economy and Climate Minister Robert Habik said in a statement that Germany is suffering from structural problems. He pointed to a shortage of workers and skilled workers, heavy bureaucracy and weak investment.
A preliminary reading of German GDP is scheduled to come out in the fourth quarter on Thursday. The country’s statistics office said earlier this month, based on the information available at that time, the economy fell 0.1 % in the three months until the end of December.
On Wednesday, the economic report linked inflation as 2.2 % defined this year. The consumer price index in Germany has decreased below the goal of the European Central Bank of 2 % in late summer, but it has risen again since then.
This is an urgent news story. Please check again for updates.
