After five years of economic stagnation, the longest period of lethargy never known by the country since 1945, Germany seems to see the light at the end of the tunnel. Thursday, June 12, two major economic institutes, that of Munich (IFO) and that of Kiel (IFW) noted their growth prospects for the first European economy. They now anticipate growth of 0.3 % in 2025 and 1.5 % to 1.6 % in 2026. A better due to the recovery measures announced in the spring by the new government in Berlin.
“The German economy crisis has reached its lowest point during the winter semester”said Timo Wollmershäuser, chief economist at IFO on Thursday morning. This period was marked by an increase in exports (in anticipation of customs duties imposed by the US administration) and by restarting consumption (thanks to recent wages). “After two years of decline, industry has reached its floor, at a low level. After two years of scarcity, private consumption increases again more sensitively, and business investments are gradually turning to the positive ”, Confirms Stefan Kooths, from the Kiel Institute for the World Economy (IFW).
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Source: Lemonde