Published by Global Banking and Finance Review
Posted on September 23, 2025
1 min readLast updated: January 21, 2026
German institutes revise 2025 growth forecast to 0.2%, with further growth expected in subsequent years despite tariff challenges.
By Klaus Lauer and Holger Hansen
BERLIN (Reuters) -Five leading German economic institutes have nudged their 2025 growth forecast for Europe's largest economy up to 0.2% and predicted further rises of 1.3% next year and 1.4% in 2027, sources familiar with the matter told Reuters on Tuesday.
The institutes had predicted 0.1% growth this year and 1.3% next year in their previous April forecast, in which they had not yet given an indication for 2027.
Those prior forecasts had factored in initial U.S. tariffs on steel, aluminium and cars, but not the 15% tariff on other goods.
Export-dependent Germany is the only G7 economy that has contracted for the last two years and U.S. President Donald Trump's tariffs will deal a major blow to Europe's biggest economy.
The economy ministry incorporates the combined estimates from the institutes into its own predictions.
The last government forecasts, published in April, foresee stagnation for this year and 1.0% growth for 2026.
(Reporting by Klaus Lauer and Holger Hansen, Writing by Miranda Murray, Editing by Rachel More)
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