{"id":65881,"date":"2025-10-08T16:28:07","date_gmt":"2025-10-08T16:28:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/65881\/"},"modified":"2025-10-08T16:28:07","modified_gmt":"2025-10-08T16:28:07","slug":"germany-raises-economic-growth-projections-dw-10-08-2025","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/65881\/","title":{"rendered":"Germany raises economic growth projections \u2013 DW \u2013 10\/08\/2025"},"content":{"rendered":"

The German government on Wednesday increased its growth forecasts, saying it expected economic growth to narrowly avoid stagnation<\/a> in 2025 before enjoying more pronounced growth in 2026.<\/p>\n

The last government projection in April predicted zero growth for 2025 for Europe<\/a>‘s largest economy, but this has\u00a0been upgraded to 0.2%, with the estimate for 2026 raised from 1% to 1.3%.<\/p>\n

“After two years of shrinking economic performance, a light, low-level recovery is expected for autumn 2025,” read a government statement.<\/p>\n

“By the turn of the year 2025\/26, the internal economic dynamic should pick up speed, supported by financial and economic measures taken by the federal government.”<\/p>\n

Growth comes from state financing<\/p>\n

For 2027, Germany\u00a0is even predicting 1.4% growth.<\/p>\n

“A substantial part of growth in the coming years will be a result of higher state financing<\/a>, in particular from the special funds for infrastructural investments and increased investment in defense,”\u00a0Economy Minister Katherina Reiche\u00a0told a press conference on Wednesday, presenting the projections.<\/p>\n

However, the government projections have also come under criticism<\/a> for essentially being financed by taking on public debt<\/p>\n

Reiche\u00a0also pointed to the need to lower energy prices and lower taxes in order to spur further growth.<\/p>\n

“We need the courage to take decisive reforms,” she said.<\/p>\n

Germany<\/a>‘s manufacturing sector has been struggling under the weight of high energy prices, fierce foreign competition and the effects of new US tariffs<\/a> on EU products.<\/p>\n

Earlier on Wednesday official data showed a sharp decline in industrial production in August, particularly in the automotive sector, which is facing stiff competition from China<\/a> in particular.<\/p>\n

Germany’s car industry on the brink?<\/p>\n

To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video<\/a><\/p>\n

Edited by: Wesley Rahn\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"The German government on Wednesday increased its growth forecasts, saying it expected economic growth to narrowly avoid stagnation…\n","protected":false},"author":2,"featured_media":65882,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-65881","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/65881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=65881"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/65881\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/65882"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=65881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=65881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=65881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}