S&P has confirmed the top credit for Germany.
Dow Jones-S & P confirmed the top credit for Germany. The view is stable. The analysts of the rating agency expect a moderate relaxation for Germany. GDP growth will be seen at 0.5 percent in 2025 and in 2026 at 1.0 percent, since the high savings quotas should decrease and thus the investment activity including the construction industry should increase-although possible US tariffs are a risk for the export-oriented economy.
The analysts expect political fragmentation in the face of self -imposed restrictions on fiscal flexibility under the constitutionally prescribed structural deficit limit in Germany, which will remain a challenge for the new government after the elections on February 23. Despite the unsafe growth prospects, the key strengths of the German loan profile remained, namely moderate levels of state debt, a wealthy economy and the strongest external balance of a large global economic area.
The stable view reflects the expectation that Germany’s external and fiscal strengths, its diversified and wealthy economy and institutional effectiveness will continue to support its creditworthiness. From the analyst’s point of view, these strengths should be sufficient to cushion short -term problems, including weak productivity and an aging population.
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