Gunther unveils spring prediction for the federal government's growth
- Federal Government's Spring Outlook Unveiled by Habeck
In the latest annual economic report, the federal government's growth forecast took a hit, plummeting from 1.1% to a dismal 0.3%. Top German economic institutes now forecast a meager 0.1% growth in 2025, while the International Monetary Fund predicts no growth at all. By 2026, the German economy is projected to bounce back, with growth ranging between 0.9% and 1.3%.
- Gunther Oettinger
- Economic growth
- German government
- Press conference
Insights: The updated economic growth forecast for Germany, presented by the German government and leading economic institutes, is as follows:
- 2025 Forecast: The outgoing German federal government, under Economy Minister Gunther Oettinger, has revised its economic growth forecast for 2025 to zero, attributing this decline to Donald Trump's trade policies as a major contributing factor. Early expectations for 2025 had been 1.1% growth in October 2024 and 0.3% only two months prior[2]. Leading economic institutes have also trimmed their forecast to 0.1%, down from their earlier prediction of 0.8%[4].
- 2026 Forecast: The German government anticipates GDP growth of 1% for 2026, a decline from the previous 1.1% prognosis[2]. The economic institutes, on the other hand, predict growth of just over 1%, compared to their earlier expectations of 1.3%[2][4].
Note: There's no mention of the International Monetary Fund (IMF) in the related search results with regards to these forecasts. The focus is primarily on the influence of U.S. trade policies and internal economic conditions within Germany.
- At a press conference, Economy Minister Gunther Oettinger unveiled the revised economic growth forecast for 2025 by the outgoing German federal government, a decline to zero attributed to Donald Trump's trade policies.
- The federal government's employment policy, in light of the bleak growth forecast, may need to be reevaluated to stimulate economic recovery.
- The German business community would closely follow the community policy decisions with regards to employment, in the face of the upcoming economic challenges.
- Despite the current slow growth forecast, Finance Minister Habeck expressed optimism about the German economy's rebound in 2026.