According to a forecast by the Organization for Economic Cooperation and Development (OECD), it is even worse than adopted.
In the December forecast for 2025, Germany ranked in last place with growth of 0.7. Now the experts corrected their expectations to 0.4 percent downwards, as can be seen from the report presented in Paris. Only Mexico is even weaker.
Germany thus follows the trend of the global economy, which, according to the report, is significantly struck by the trade conflicts around the US government. Together with geopolitical conflicts, there is a climate in which companies invest less and keep consumers together.
The United States is also taken by the trade conflict
Under this impression, the OECD experts lowered their expectations for global economic output this and next year. It should therefore hit Mexico and Canada particularly hard – but the USA will also make the USA significantly feathers in the coming year.
The numbers are assumed that the announced US tariffs come into force as announced and Canada and Mexico initiate corresponding countermeasures. The IFO Institute had previously reduced its forecast for Germany: In the current year, it only expects growth of 0.2 percent.