Germany slashes growth outlook in 'serious' diagnosis of Europe's largest economy

The German government has cut its GDP forecast for 2025 to just 0.3% growth, citing stagnation and geopolitical uncertainty. The latest estimate is down from an October projection of 1.1%, with other economic bodies also revising their outlooks. The country’s economy is expected to pick up in 2026 after a weak initial development this year, with inflation falling and real incomes rising.

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