The German economy is forecast to contract for a third year in a row as it battles the “longest economic crisis” in its modern history, according to a German think-tank.
The Handelsblatt Research Institute (HRI) predicts the largest economy in the European Union, and at the same time Poland’s biggest trading partner, will shrink by 0.1% in 2025, following a 0.3% contraction in 2024 and 0.3% in 2023.
"The German economy is in the midst of its greatest crisis in post-war history,” said Bert Rürup, chief economist at the HRI. “The pandemic, energy crisis and inflation have made Germans poorer on average.”
Other analysts are also less than optimistic about the 2025 outlook for the German economy, which is closely tied to the performance of its vast automotive sector.
In December, the German central bank cut its growth forecast for 2025 to 0.2% from the 1.1% it had predicted in June.
The economic state of the country is a hot topic for Germans, who listed the economy as their main concern ahead of snap general elections on February 23, according to a December poll carried out for public television.
"The German economy is in the midst of its greatest crisis in post-war history,” said Bert Rürup, chief economist at the HRI. “The pandemic, energy crisis and inflation have made Germans poorer on average.”
Other analysts are also less than optimistic about the 2025 outlook for the German economy, which is closely tied to the performance of its vast automotive sector.
In December, the German central bank cut its growth forecast for 2025 to 0.2% from the 1.1% it had predicted in June.
The economic state of the country is a hot topic for Germans, who listed the economy as their main concern ahead of snap general elections on February 23, according to a December poll carried out for public television.
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