The EU Commission continued to expect the German economy in 2025.
According to its spring business forecast presented in Brussels, the authority assumes an unchanged German gross domestic product (GDP) for the current year. In her previous estimate in November, she had predicted slight growth of 0.7 percent. It is not until 2026 that the gross domestic product in Germany is expected to grow by 1.1 percent again, according to the authority.
The EU Commission justified its assessment with tariffs and an increasing global uncertainty that will pull consumption, investments and exports down. In contrast, increased private expenditure and the billion-dollar financial package for defense and infrastructure decided by the new federal government have had a positive impact on expectations. A weaker development is only expected in Austria in the current year (minus 0.3 percent).
Even the federal government does not expect growth
With its estimate, the EU Commission comes to the same conclusion as the Federal Government, which in 2025 expects German economic output. The International Monetary Fund (IMF) also does not promote Germany in the current year.
Throughout the EU, the Commission expects growth of 1.1 percent for the current year. In the euro area, it assumes an increase in gross domestic product by 0.9 percent. The authority reduced both forecasts by 0.4 percentage points compared to its November forecast.