Germany's Economic Forecast: Stagnation and Hope

The German Council of Economic Experts announced a revised forecast for the nation's economy on Wednesday, predicting stagnation amidst what it labeled a 'pronounced phase of weakness'.

The council, responsible for advising the German government, previously forecasted a 0.4% growth; however, ongoing fiscal restraints and an industrial downturn have proven challenging. Germany remains the only G7 economy unable to achieve growth over the past two years.

Adding to the difficulty are tariffs by the U.S., but hope lies in a newly approved fiscal plan with significant infrastructural investments. These efforts could reignite growth, with positive impacts expected as early as 2026.

(With inputs from agencies.)