The German government announced on Wednesday an economic growth forecast of 0.3% for the year 2025, down from the 1.1% projected last October.
The close expansion projections occur in the middle of the return of US President Donald Trump to the White House and the next federal elections next year.
A report through the Economy Ministry expected Germany’s poor economic returns to be larger until this year, after two years of recession.
“Germany is in stagnation,” said Economy Minister Robert Habeck said a press convention in Berlin.
The report indicates that the review of the prognostic expansion “mainly due” to the Government Cave last November, which led to an interruption of the measures aimed at inspiring the expansion.
Chancellor Olaf Scholz’s coalition government collapsed in November, after his Social Democrats (SPD) and the Greens fell out with their coalition partner, the neoliberal Free Democratic Party (FDP), over budget disagreements.
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While the largest economy in Europe awaits a new government after the February 23 elections, the country’s long -term economic policy remains uncertain.
The report also said the downgrade was due to the “significantly” increased risks to trade, amid the return of US President Donald Trump to the White House, and the potential changes to US policy he could introduce.
At the same time, a survey conducted through the Investment Funds provider of the Union revealed that 53% of respondents expected their own monetary scenario to remain solid in the next 12 months, while 30% even the idea of that would improve.
RMT/JCG (AFP, DPA)