Latest news with #GermanEconomy
Reuters
23-06-2025
- Business
- Reuters
German industrial lobby group cuts 2025 economic forecast as US tariffs weigh
June 23 (Reuters) - The German economy is set to contract more than previously expected in 2025 as U.S. tariffs weigh on exports, the BDI industry association said on Monday, forecasting a 0.3% contraction in 2025. In January BDI had forecast a 0.1% contraction, but flagged that changes to U.S. tariff policy might impact the export-driven economy further. A contraction in 2025 would mark Germany's third consecutive annual decline. The U.S. was Germany's biggest trading partner in 2024 with two-way goods trade totalling 253 billion euros ($288.02 billion). "Nevertheless, there is a real chance of an upturn next year if the German government resolutely pursues the path it has taken," BDI President Peter Leibinger said in a statement. Leibinger welcomed initial steps taken by the current government, such as tax and energy price relief, but said further reforms were necessary. BDI also offered the government support in strengthening Germany's defence capabilities, with Leibinger saying that "German industry is ready to make its contribution."
Free Malaysia Today
13-06-2025
- Business
- Free Malaysia Today
German economy set to grow 0.3% in 2025
The German economy is expected to grow by 1.7% next year, according to the DIW Berlin. (Pixabay pic) BERLIN : The German economy is expected to grow by 0.3% this year following two consecutive years of contraction, the economic institute DIW Berlin said today, the fifth institute to raise its forecasts for 2025 and 2026. The DIW had previously expected 0.1% growth for 2025 but it upgraded the forecast due to a better-than-expected first quarter, when the German economy grew by 0.4%. 'The surprisingly dynamic start to the year is likely to spare us from another year of stagnation,' said the DIW's chief economist Geraldine Dany-Knedlik. The economy is expected to gain momentum at the end of the year thanks to a government investment package, the DIW said in its report. Germany's parliament approved plans for a massive spending surge in March, including a €500 billion (US$577 billion) infrastructure fund and largely removing defence investment from rules that cap borrowing. The investment package and improved financing conditions are likely to give the economy a noticeable boost, while US trade policy burdens German foreign trade and the global economy, the institute said. The German economy is expected to grow by 1.7% next year, according to the DIW Berlin, up from a previous forecast of 1.1%.
Reuters
13-06-2025
- Business
- Reuters
German economy expected to grow by 0.3% in 2025, DIW Berlin says
BERLIN, June 13 (Reuters) - The German economy is expected to grow by 0.3% this year following two consecutive years of contraction, the economic institute DIW Berlin said on Friday, the fifth institute to raise its forecasts for 2025 and 2026. The DIW had previously expected 0.1% growth for 2025 but it upgraded the forecast due to a better-than-expected first quarter, when the German economy grew by 0.4%. "The surprisingly dynamic start to the year is likely to spare us from another year of stagnation," said the DIW's chief economist Geraldine Dany-Knedlik. The economy is expected to gain momentum at the end of the year thanks to a government investment package, the DIW said in its report. Germany's parliament approved plans for a massive spending surge in March, including a 500-billion-euro ($577 billion) infrastructure fund and largely removing defence investment from rules that cap borrowing. The investment package and improved financing conditions are likely to give the economy a noticeable boost, while U.S. trade policy burdens German foreign trade and the global economy, the institute said. The German economy is expected to grow by 1.7% next year, according to the DIW Berlin, up from a previous forecast of 1.1%. ($1 = 0.8660 euros)
Reuters
12-06-2025
- Business
- Reuters
Ifo institute raises German growth forecasts due to new government plans
BERLIN, June 12 (Reuters) - The Ifo institute on Thursday raised its forecasts for the German economy for this year and next, expecting new government measures and a spending surge to boost the anaemic economy. The economic institute said it expects 0.3% growth this year, up from the 0.2% previously forecast. For 2026, Ifo foresees 1.5% growth, up from the 0.8% expected in its spring forecasts. "The crisis in the German economy reached its low point in the winter half-year," said Timo Wollmershaeuser, head of forecasts at Ifo. "One reason for the growth spurt is the fiscal measures announced by the new German government." The German cabinet approved a 46-billion-euro ($52.94 billion) tax relief package last week to support companies and revive its sluggish economy from this year through 2029. Germany's parliament also approved plans for a massive spending surge in March, including a 500-billion-euro infrastructure fund and largely removing defence investment from the rules that cap borrowing. In its economic forecast, the Ifo institute estimates a boost of 10 billion euros in 2025 and 57 billion euros in 2026 from these measures. As a result, growth is likely to be 0.1 percentage points higher this year and 0.7 percentage points higher next year, compared with a scenario without the government economic plans.
Reuters
12-06-2025
- Business
- Reuters
German economy to grow after two straight years of contraction, IfW says
BERLIN, June 12 (Reuters) - The German economy is expected to grow this year following two consecutive years of contraction, the Kiel Institute for the World Economy (IfW) said on Thursday. The economic institute raised its forecast to 0.3% growth from the stagnation it had previously envisaged. The revision is due to a better-than-expected first quarter, when the economy grew by 0.4%. "The German economy is seeing some light at the end of the tunnel," the economists said in their new forecasts. They are also more optimistic about next year, raising the forecast for Europe's largest economy to 1.6% growth from the previous forecast of 1.5% in 2026.
