Germany’s economy will eke out meagre growth in 2025 before picking up speed next year, the government Wednesday said as it raised forecasts, but called for “decisive reforms” for a sustained recovery.

Europe’s top economy shrank in both 2024 and 2023 as it was hit by a manufacturing slump, surging energy costs and weak demand for its exports, particularly from key market China.

In its latest forecasts, the economy ministry said it did not expect a third year of recession in 2025, although the economy would only grow 0.2 percent. This was up from a forecast of stagnation in April.

Next year it expects growth of 1.3 percent, up from a previous forecast of one percent, with a spending blitz on defence and infrastructure championed by Chancellor Friedrich Merz set to provide a boost.

In 2

See Full Page