The German Bundesbank on Friday said the sluggish growth of the German economy would last significantly longer than it had previously assumed, cutting its economic forecasts for 2025 and 2026.
It comes as Europe’s largest economy faces multiple headwinds.
How the outlook has changed
The country’s central bank forecast that output would grow a mere 0.2% in 2025, down from a June forecast of 1.1%.
It also predicted growth of 0.8% for 2026, well down on the previously expected 1.4%.
“The German economy is not only battling with persistent economic headwinds, but also with structural problems,” explained Bundesbank President Joachim Nagel on Friday.
The issues primarily affect industry and exports, as well as investment, he said.
rc/zc (dpa, AFP)
