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German economic institutes pessimistic on growth in 2025

  • Germany's economic institutes issued pessimistic growth forecasts for 2025 due to political risks at home and abroad.
  • The DIW expected output to fall by 0.2 percent this year, followed by a gradual revival of 0.2 percent growth next year.
  • Higher energy and material costs, along with stronger international competition from China, are impacting Germany's key sector.
  • The German Bundesbank cut its economic forecasts for 2025 and 2026, stating sluggish growth would last longer than previously assumed.
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