Ifo predicts stagnation for German economy
The German economy will continue to struggle in 2025, according to the renowned Ifo economic institute, which has revised its forecasts, correcting the initial growth forecast for 2025 from 0.4% to 0.2%. Stronger growth of 0.8% will only be seen starting in 2026.
"The German economy is stuck. Despite the recovery in purchasing power, consumer confidence remains weak and companies are also cautious when it comes to investments," says Timo Wollmershäuser, head of economic forecasts at Ifo, CE Report quotes Kosova Press.
The industrial and construction sectors are particularly affected by the greatest difficulties, while the Institute notes that the decline in German exports highlights the loss of competitiveness of German industry.
The institute also highlights the uncertain path of the new US administration, which contributes to the creation of uncertainty; current forecasts do not take into account the hypothesis of large US tariffs on imports from Europe.
Ultimately, the goals of the German government being formed could have a positive effect, particularly in the areas of infrastructure and defense, thereby stimulating growth and production potential, but it remains to be seen which projects will actually be realized.
