US EditionGerman economy to shrink in 2025 amid global pressures: study
- On May 13, 2025, a forecast from a Cologne-based economic research center indicated that Germany’s GDP is expected to shrink by 0.2 percent, signaling a recession to close out the year.
- This downturn follows two consecutive years of contraction, driven by U.S. Trade tariffs, global uncertainty, and weak investment by industry and construction.
- In 2024, the construction industry experienced a 3.7 percent decline in output, while ongoing inflation and increasing regulatory pressures continue to hinder economic expansion and impact job opportunities.
- Michael Grmling from IW emphasized the necessity for immediate reforms and suggested that establishing a 500 billion euro fund dedicated to investments could be an effective measure.
- The IW warns that without swift government action to address structural issues, unemployment could surpass three million and economic struggles may deepen.
18 Articles
18 Articles
German economy to shrink in 2025 amid global pressures: study
FRANKFURT, May 13 (Xinhua) -- Germany is expected to lag behind other major global economies in 2025, with its economic output projected to contract by 0.2 percent, according to a forecast released Tuesday by the German Economic Institute (IW). Read full story
"Weißbier-Index" in Bavaria: Economic situation remains difficult
For 2025 the Bavarian economy expects "at best a stagnation year" - but not all signals are bad. The new federal government must deliver quickly in order to make an upswing out of the mood of departure.
New forecasts for the German economy: it will be even worse
The German economy will shrink by an additional 0.2 percent, sending the country into a new recession cycle, according to the latest forecasts from the German Economic Institute. In addition, Germany is also being strongly affected by the trade war triggered by the US government's tariffs.
IW economists expect recession over the US customs dispute
»The German economy is under enormous pressure«: In 2025, economists at the IW in Cologne expect economic performance to fall. The number of unemployed people could already jump over the three million mark in the summer.
Germany faces recession for the third consecutive year
According to the latest data from the Institute for German Economics (IW), published on Tuesday, Germany will end the year in recession for the third consecutive time. The revised forecast projects a 0.2 percent drop in GDP, factoring in the effects of the trade conflict with the United States. U.S. tariff policy poses the biggest threat to the global economy in 2025, and the IW estimates that global economic growth would have been 0.8 percent h…
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