German Economy Remains Stuck in Meagre Growth Phase Despite 500-Billion-Euro Stimulus, Institutes Warn
Germany's growth forecasts downgraded as stimulus arrives too late for recovery.
Germany
DE's economy has stabilised but remains trapped in a phase of meagre growth, with planned fiscal expansion providing only limited momentum, two leading German economic institutes warned on Thursday. The assessment signals deepening concerns about Europe's largest economy despite government promises of substantial stimulus.
DE's economy has stabilised but remains trapped in a phase of meagre growth, with planned fiscal expansion providing only limited momentum, two leading German economic institutes warned on Thursday. The assessment signals deepening concerns about Europe's largest economy despite government promises of substantial stimulus.The Kiel Institute downgraded its 2026 growth forecast to 1.0%, down from 1.3% predicted in autumn, while projecting 1.3% expansion in 2027. Growth of just 0.1% is expected for 2025 following two consecutive years of economic contraction. "A self-sustaining upswing is still not in sight," the institute's report concluded.
