10.04.2025 • 13/2025
Joint Economic Forecast 1/2025: Geopolitical turn intensifies crisis – structural reforms even more urgent
The German economy will continue to tread water in 2025. In their spring report, the leading economic research institutes forecast an increase in gross domestic product of just 0.1% for the current year. For 2026, the institutes expect gross domestic product to increase by 1.3%. In the short term, the new US trade policy and economic policy uncertainty are weighing on the German economy. The additional scope for public debt should gradually have an expansionary effect, but threatens to crowd out private consumption and private investment.
Oliver Holtemöller
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