Robert Habeck, Minister of Economic and Climate Action and Candidate Green Party Minister, was a weekly federal government cabinet meeting held in Berlin, Germany on January 29, 2025.
Sean Gallup (Sean Gallup) | Getty Picture News | Getty Image
The German government reduced its GDP by 0.3 % in 2025 on Wednesday.
Minister of Economy and Climate Robert Habeck said at a press conference: “Diagnosis is serious.” He pointed out that despite some positive development, such as the demand for credit has continued to rise, “Germany was trapped in the trapped in Germany was trapped in Standard. ”
The latest GDP estimation value is far lower than the forecast increase of 1.1 % in October this year, but it is consistent with the predictions of other economic institutions. The International Monetary Fund has been cut early this month prospect Now, the German economy has grown 0.3 % this year, and the federal government grows in December explain GDP is expected to increase by 0.2 % during this period.
In contrast, the German Industry Association on Tuesday forecast The country’s economy will shrink 0.1 % in 2025, which will decline for the third time.
Annual GDP number It shows that the German economy signed 0.2 % in 2024 because it had fallen by 0.3 % last year. The quarterly GDP numbers have been dull, but so far, the technical recession of contraction in two consecutive quarters has been avoided.
Habeck said several key reasons were the decline in the decline in GDP forecast. These include the current government growth plan cannot be fully implemented due to the premature end of the government’s term and the issues that are about to be held. After the President Donald Trump’s White House returned and the possibility of tariffs on European countries, Habeck also cited geopolitics uncertainty.
Looking forward to the future, due to continuous geopolitical uncertainty and lack of clarity of the economic and financial direction of the new government, the domestic economy may only show this year’s development, and the economic and fiscal direction of Germany’s economy and climate lacks clearness. 2025 Economic Report.
It envisioned that with the decline in inflation and the growth of actual income, economic growth and economic conditions have become clearer.
Habeck pointed out that the GDP growth rate in 2026 is now 1.1 %.
Germany will go to the federal election on February 23. The election is the initial plan of the country Rupture of the League November.
Structural challenge
Echo with Minister Last week’s comment on CNBCHaber said on Wednesday that Germany suffered from structural problems. He said that this was proved to this because of the lack of economic development in recent years. In a statement on Wednesday, he pointed out that the shortage of workers and skilled workers, bureaucracy and investment weak.
Minister of Finance added that German investment is insufficient and restricted fiscal policies have been weakening.
The preliminary reading of the fourth quarter of Germany will be released on Thursday. The Statistics Bureau of the country said earlier this month that according to the information available at the time, the economic retreat was 0.1 % as of the three months as of the end of December.
The economic report on Wednesday also set the inflation rate to an average of 2.2 % this year. The German consumer price index fell to the 2 % goal of the Central Bank of Europe in the late summer, but has risen again.
