Published by Global Banking & Finance Review®
Posted on October 8, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleGermany's economy ministry updates its 2025 growth forecast to 0.2%, driven by domestic demand, with exports expected to decline.
By Maria Martinez
BERLIN (Reuters) -Germany's economy ministry revised up on Wednesday its growth forecast for this year to 0.2% from an earlier forecast of zero, as published by Reuters on Saturday.
The ministry now expects 1.3% growth next year and 1.4% growth in 2027.
Europe's largest economy has registered little growth since the onset of the COVID-19 pandemic which was followed by Russia's full-scale invasion of Ukraine and the launch of U.S. President Donald Trump's tariff policy. It spent 2023 and 2024 in recession.
Contrary to the typical recovery pattern, foreign trade is not expected to drive the upturn. Instead, it will be domestic demand, in particular private and public consumption as well as investment activity, that will give momentum to the recovery, the ministry said.
Exports are expected to decline by 0.1% in 2025, before posting growth of 1.2% and 1.6% in the two following years.
The number of unemployed people in Germany topped 3 million for the first time in a decade in August as Germany has struggled with a persistently weak economy.
According to the new government projections, unemployment will edge down from 6.3% this year to 6.2% in 2026, before easing to 6.0% in 2027.
(Reporting by Maria MartinezEditing by Madeline Chambers)
Economic growth refers to an increase in the production of goods and services in an economy over a period of time, typically measured as the percentage increase in real GDP.
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