Berlin: The German government has lowered its economic growth forecast to zero for 2025, predicting another difficult year for Europe’s largest economy.
According to Qatar News Agency, German Economy Minister Robert Habeck stated that this adjustment follows an earlier projection in January, which had anticipated a 0.3 percent GDP growth for the year. However, the outgoing center-left administration now foresees the economy entering a recession this year.
This revision indicates minimal prospects for a recovery after projected recessions in both 2023 and 2024. The January forecast had already been adjusted downward from an earlier prediction of 1.1 percent GDP growth made in October of the previous year.
The German economy has faced significant challenges in recent years, with inflationary pressures exacerbated by the coronavirus pandemic and the ongoing Russia-Ukraine conflict.