The economic downturn in Germany may drag on into 2025

Germany's industrial community is expressing concern, predicting that Europe's largest economy could contract for the third year in a row in 2025. According to their forecasts, the expected decrease will be 0.1%. 

President Peter Leibinger, who heads the BDI organization, stressed in a statement that the current situation is of serious concern. He paid special attention to the structural changes that have significantly affected the industrial development of the country.

In contrast to this pessimistic forecast, the opinions of most analysts look somewhat more encouraging. On average, they assume that the German economy may show growth of 0.4% in 2025. But after a two-year decline in GDP, including the expected results in 2024, the development prospects remain very vague.

For its part, the Bundesbank estimates possible growth in 2025 at 0.2%, but warns of the risks of a new recession. A key uncertainty factor remains the potential trade barriers that could be imposed by the United States if Donald Trump fulfills his promises to China and other countries.