The German government cuts economic forecast

Growth in the German economy is expected to land at a modest 0.3 percent this year, according to a new forecast from the German government. This is a significant cut. The previous forecast had a GDP growth rate of 1.1 percent for 2025.

Nor is any significant recovery expected next year. In 2026, growth will remain at 1.1 percent, down from the previous assessment of 1.6 percent.