The German government on Wednesday announced a forecast of economic expansion of 0. 3% for the year 2025, up to 1. 1% scheduled for last October.
The projections for tight expansion come amid the return of U. S. President Donald Trump to the White House and the upcoming federal election next year.
A report through the Economy Ministry expected Germany’s poor economic returns to be larger until this year, after two years of recession.
“Germany is caught in stagnation,” Economy Minister Robert Habeck, at a press convention in Berlin.
The report said the expansion review forecasts “primarily due” to the government’s cave last November, which led to a halt in measures aimed at inspiring the expansion.
Chancellor Olaf Scholz’s coalition government collapsed in November, after his Social Democrats (SPD) and the Greens fell out with their coalition partner, the neoliberal Free Democratic Party (FDP), over budget disagreements.
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As the largest economy in Europe awaits a new government after the elections of February 23, the country’s long -term economic policy remains uncertain.
The report also indicates that the degradation due to construction “considerably” in the risks of the industry, amid the return of US President Donald Trump to the White House and the possible adjustments to US policy that he may present.
Meanwhile, a survey conducted through union investment provider funds found that 53% of respondents expected their own monetary scenario to remain strong over the next 12 months, while 30% even thought it would improve.
RMT/JCG (AFP, DPA)