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Germany revises 2025 growth forecast to 0.2%, rising to 1.3% next year
Germany's government predicts 1.3% growth in 2026 driven by a 500 billion-euro infrastructure fund and increased defense spending amid ongoing economic challenges.
- Germany's economy ministry revised its 2025 growth forecast to 0.2%, stating there won't be a third recession year.
- In 2026, growth is expected to rise to 1.3%, supported by increased defense and infrastructure spending led by Chancellor Friedrich Merz.
- Economy Minister Katherina Reiche mentioned that deeper reforms are necessary to address structural weaknesses in the economy.
- Economist Carsten Brzeski warned of a real risk of recession due to a 0.3% GDP contraction in the second quarter of 2025.
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The Federal Government expects an economic upturn next year. Minister Reiche said that growth is expected to be 1.3 percent. This year, the government expects growth to be 0.2 percent.
·Germany
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The German economy is at a turning point: growth is to return in 2025, but most of the upswing comes from costly expenditure.
Coverage Details
Total News Sources63
Leaning Left11Leaning Right4Center16Last UpdatedBias Distribution52% Center
Bias Distribution
- 52% of the sources are Center
52% Center
L 35%
C 52%
13%
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