Challenging Horizons: Germany's Economic Outlook Dims
The OECD downgraded Germany's economic outlook, projecting marginal growth in the coming years due to weak global demand and high energy costs. In contrast, the euro zone's forecast was slightly upgraded. Trade tensions and geopolitical uncertainties loom, though easier credit conditions offer a silver lining.
The Organisation for Economic Cooperation and Development (OECD) revised its economic outlook for Germany, signaling challenges ahead. While Germany faces stagnation, the euro zone economy shows a glimmer of hope for this year.
OECD forecasts reveal Germany's GDP may grow by just 0.3% in 2025 and 1.1% in 2026, a downward revision of 0.1 percentage points each year. After consecutive years of slowdown, Germany grapples with weak global demand, soaring energy costs, and dwindling industrial output. Meanwhile, the euro zone's GDP is expected to grow by 1.2% in 2025, up by 0.2 percentage points from prior estimates.
Looking at next year, the OECD projects a 1.0% growth for the euro zone, a downgrade from 1.2%. Though geopolitical uncertainty and trade friction pose threats, eased credit conditions provide a slight relief, according to the OECD's analysis.
(With inputs from agencies.)
Google News