The annual report of the Deutsche Bundesbank reveals a stagnating economy.
The German economy continues to be in a phase of stagnation. According to the Bundesbank, no significant growth impulses are expected in the current third quarter of 2025 either. In its latest monthly report, the central bank forecasts largely unchanged economic performance for this period.
However, the current assessment is slightly more optimistic than in June. For the full year 2025, the Bundesbank now considers a minimal increase in gross domestic product (GDP) possible. According to a report on the »stern« online platform, this slightly revised assessment is based on two factors: firstly, revised figures from the Federal Statistical Office show that the German economy grew slightly in the last quarter of 2024 – contrary to earlier estimates of a slight decline. Secondly, recent sentiment indicators point to an unexpectedly positive development.
Nevertheless, significant risks remain. The Bundesbank warns of ongoing uncertainties due to US economic policy, despite the basic agreement in the trade dispute between the US and the European Union. Exports »Made in Germany« to the US are likely to face higher burdens.
Particularly problematic: according to the Bundesbank, the German industry is not expected to provide any significant growth impulses in the current quarter. The construction sector also shows no dynamic development, despite a slight recovery in orders. In addition, subdued prospects in the labor market are dampening private household consumption.
In the second quarter of 2025, according to preliminary calculations, economic output fell by 0,1 percent compared to the previous quarter.
MK
