Germany Revises 2025 Economic Growth Forecast Up to 0.2% Amid Recovery Signs

Germany's economy ministry has revised its 2025 GDP growth forecast slightly upward to 0.2%, up from an earlier projection of zero, signaling a tentative recovery for Europe's largest economy after years of stagnation and back-to-back recessions. This revision aligns with forecasts from major German research institutions and will be officially announced by Economy Minister Katherina Reiche. The ministry also projects stronger growth momentum in the subsequent years, with forecasts of 1.3% for 2026 and 1.4% for 2027. Despite these optimistic adjustments, challenges persist due to factors such as lingering inflation, high energy costs, weaker global demand, and the economic impact of Russia's invasion of Ukraine and President Donald Trump's tariffs. Policymakers are expected to emphasize the need for structural reforms and investment to support long-term economic stability. Overall, the revised forecasts reflect cautious optimism amid ongoing economic headwinds.