A source familiar with the matter said the German economy ministry revises 2025 growth forecast up slightly to 0.2%, source says. The new projection marks an increase from the earlier estimate of zero growth, suggesting a small improvement in the outlook.
The ministry also expects the economy to grow by 1.3% in 2026 and 1.4% in 2027. The adjustments reflect updated data from leading economic institutes, which themselves recently revised forecasts upward.
Germany’s economy has struggled in recent years. After a recession in 2023 and sluggish performance in 2024, it remains one of the weakest among advanced economies. Weak consumer demand, low investment, and uncertain exports continue to limit momentum.
According to the source, the decision to revise the 2025 growth forecast to 0.2% was based on more optimistic signals from the labor market and industrial output, though both remain fragile. The official announcement is expected when the ministry publishes its full forecast later this week.
Analysts caution that growth of 0.2% is still very modest and does not represent a strong recovery. Inflation pressures, falling industrial orders, and global trade risks could weigh further on performance. Many economists stress the need for structural reforms and greater public investment to support long-term potential.
Still, raising the estimate from zero to 0.2% indicates some optimism. It suggests Germany could narrowly avoid stagnation in 2025 and begin a slow path toward recovery. Markets and policymakers will closely monitor the details in the official forecast, as any sign of stability in Europe’s largest economy carries broader regional implications.
For now, the message remains cautious but slightly more hopeful: German economy ministry revises 2025 growth forecast up slightly to 0.2%, source says, pointing to a fragile yet possible turning point for the country’s economic outlook.
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