German economy: growth forecast for 2025 decreased to 0.3%

The official forecast of German economic growth for 2025 has been significantly lowered, now it is only 0.3%. The previous estimate assumed growth of 1.1%, which makes the new value a clear indicator of the deteriorating situation in Europe's largest economy.

The reason for this revision was the slowdown in economic activity, which has not been able to recover after two years of continuous decline. Starting in 2021, the German economy is experiencing serious difficulties caused by a number of factors. Among them are high competition at the global level, a sharp increase in energy costs, a steady increase in interest rates, as well as a business climate characterized by significant uncertainty.

According to official data released last week, the German economy contracted by 0.2% at the end of the year. This only confirms the complexity of the situation, which has become a key trigger for political change. 

Economic problems largely contributed to the collapse of the three-party coalition led by Chancellor Olaf Scholz. The main differences between the parties were related to the choice of strategies to stimulate economic growth.