German business expects economic contraction for the third consecutive year.
30.01.2025
2673
Journalist
Shostal Oleksandr
30.01.2025
2673
According to German industrial lobby, the largest economy in Europe will shrink for the third consecutive year in 2025 - by 0.1%.
The average analyst forecast expects growth of 0.4% in 2025. However, due to consecutive years of GDP contraction in 2024, Germany's prospects for 2025 remain bleak.
'The situation is very serious. Specifically, industrial growth has suffered a structural break,' said the president of BDI group, Peter Leibinger.
The Bundesbank projected growth of 0.2% and warns of a possible contraction if U.S. President Donald Trump imposes trade tariffs.
In its monthly bulletin, the Bundesbank reported that the economy is unlikely to emerge from a prolonged period of stagnation in the first quarter, due to weak production and declining private spending.
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