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German economy to shrink in 2025 amid global pressures: study
- On May 13, 2025, a forecast from a Cologne-based economic research center indicated that Germany's GDP is expected to shrink by 0.2 percent this year, confirming a third consecutive annual recession.
- This marks Germany's third consecutive recession, driven mainly by U.S. Tariff policies and persistent global economic uncertainties reducing investment.
- The construction sector fell 3.7 percent in 2024 and faces a similar decline in 2025 amid inflation, bureaucratic hurdles, and industry uncertainty.
- The IW estimates global growth would be 0.8 percent higher without U.S. Tariffs, warns unemployment could exceed three million this summer, and calls for swift government action.
- The report implies that rapid approval of a proposed 500 billion-euro investment fund is vital to stabilize Germany’s economy and counter structural challenges.
20 Articles
20 Articles
German economy to shrink in 2025 amid global pressures: study
FRANKFURT, May 13 (Xinhua) -- Germany is expected to lag behind other major global economies in 2025, with its economic output projected to contract by 0.2 percent, according to a forecast released Tuesday by the German Economic Institute (IW). Read full story
"Weißbier-Index" in Bavaria: Economic situation remains difficult
For 2025 the Bavarian economy expects "at best a stagnation year" - but not all signals are bad. The new federal government must deliver quickly in order to make an upswing out of the mood of departure.
New forecasts for the German economy: it will be even worse
The German economy will shrink by an additional 0.2 percent, sending the country into a new recession cycle, according to the latest forecasts from the German Economic Institute. In addition, Germany is also being strongly affected by the trade war triggered by the US government's tariffs.
IW economists expect recession over the US customs dispute
»The German economy is under enormous pressure«: In 2025, economists at the IW in Cologne expect economic performance to fall. The number of unemployed people could already jump over the three million mark in the summer.
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- 33% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
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