Germany faces economic setback as 2025 growth forecast turns to stagnation

The German government has downgraded its economic forecast for 2025, now predicting stagnation instead of the previously expected growth of 0.3 per cent.

The outlook for next year had been adjusted due to ongoing economic challenges, Caliber.Az reports via Russian media. 

Looking ahead to 2026, the government now expects GDP to grow by about 1 per cent, slightly below the earlier estimate of 1.1 per cent from January.

Earlier in April, leading research institutes in Germany revised their GDP growth forecast for the country in 2025, downgrading it to 0.1 per cent from the previously expected 0.8 per cent. However, experts still anticipate an economic recovery, with a projected growth rate of 1.3 per cent in 2026.

By Naila Huseynova