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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 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 Sources61
Leaning Left11Leaning Right4Center15Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 37%
C 50%
13%
Factuality
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