The German Council of Economic Experts has lowered its forecast for Germany’s economy, now expecting stagnation in 2025 amid industrial challenges and ongoing impacts from U.S. tariffs, while modest growth is anticipated to resume in 2026 thanks to a major fiscal stimulus plan.
The German Council of Economic Experts, the academic body advising the government on economic policy, on Wednesday downgraded its growth forecast for Germany’s economy, now expecting stagnation in 2025. This revision follows earlier forecasts that had predicted moderate growth, reflecting persistent industrial weakness and external risks.
Germany, Europe’s largest economy and the only G7 member to have experienced no growth in recent years, continues to face fiscal constraints and an industrial downturn that have dampened its economic prospects. Tariffs imposed by the United States remain a significant challenge for Germany’s export-oriented economy.
Monika Schnitzer, chairwoman of the Council, emphasized that Germany’s near-term economic outlook is heavily influenced by U.S. tariff policies and the country’s fiscal package. The U.S. remains Germany’s largest trading partner, with bilateral goods trade totaling 253 billion euros ($284 billion) in 2024.
On the positive side, Germany approved a major fiscal plan in March 2024, which includes a 500-billion euro special fund for infrastructure investments and relaxes borrowing limits on defense spending. Economists see this fiscal stimulus as a key factor that could help Germany return to growth.
The Council forecasts that starting in 2026, the fiscal stimulus will spur investments in construction, equipment, and government spending, leading to a projected 1.0% growth next year. Private consumption is also expected to strengthen in 2026 as real disposable incomes increase more significantly than in 2025, supporting broader economic recovery.
The European Union and Britain reached a landmark agreement Wednesday to ease border crossings in Gibraltar, ending years of uncertainty over the territory’s post-Brexit status.
Thousands gathered for a sixth straight night of protests in downtown Los Angeles on Wednesday, condemning President Donald Trump’s immigration raids as federal forces remain deployed in the city.
Romania deployed fighter jets early Thursday after Russian drone strikes targeted Ukraine’s Vylkove region near the Romanian border, though no airspace violations were detected.
Ukraine and Russia completed another prisoner exchange involving ill and severely wounded soldiers, marking ongoing efforts to ease the human toll of their conflict.
The 3rd CIS Games will take place in Azerbaijan from September 28 to October 8, featuring 246 medal sets in 23 sports disciplines across seven cities, including Khankendi.
The European Union and Britain reached a landmark agreement Wednesday to ease border crossings in Gibraltar, ending years of uncertainty over the territory’s post-Brexit status.
Forced displacement worldwide has hit a record 122.1 million, driven by conflicts in Sudan, Ukraine, and beyond, as humanitarian needs soar.
Thousands gathered for a sixth straight night of protests in downtown Los Angeles on Wednesday, condemning President Donald Trump’s immigration raids as federal forces remain deployed in the city.
Romania deployed fighter jets early Thursday after Russian drone strikes targeted Ukraine’s Vylkove region near the Romanian border, though no airspace violations were detected.
Ukraine and Russia completed another prisoner exchange involving ill and severely wounded soldiers, marking ongoing efforts to ease the human toll of their conflict.
Start your day informed with AnewZ Morning Brief: here are the top news stories for June 8th, covering the latest developments you need to know.
Presidential candidate Miguel Uribe Turbay is in critical condition after being shot three times — including twice in the head — during a campaign event in Bogotá.
Kazakhstan and the UK are strengthening defense ties with a new Military Cooperation Plan, focusing on peacekeeping and military education.
A 30-year-old woman was shot by police in Munich on Saturday evening after stabbing two people at Theresienwiese, a central park best known for hosting Oktoberfest.
Mexican President Claudia Sheinbaum has condemned U.S. immigration raids and National Guard deployment in Los Angeles, calling for reforms instead of enforcement.
US producer prices rose 2.6% annually in May, matching market expectations, with a modest 0.1% increase from April, the US Bureau of Labor Statistics reported.
The European Commission confirmed on Thursday it will postpone the implementation of new international banking regulations by a year, citing concerns over global alignment and competitiveness.
The euro surged to its highest level in nearly four years against the U.S. dollar, as global investors turned to safe-haven assets amid growing geopolitical tensions and uncertainty surrounding the U.S.-China trade deal.
The U.S. Energy Information Administration (EIA) has slightly increased its forecast for Brent crude oil prices in 2025, despite expectations of growing global stockpiles.
South Korea's main stock index, the Korea Composite Stock Price Index (KOSPI), rose by 35.19 points, or 1.23%, on Wednesday, closing at 2,907.04. This marks its highest closing level since 14 January, 2022, when it reached 2,921.92 points.
The European Union and Britain reached a landmark agreement Wednesday to ease border crossings in Gibraltar, ending years of uncertainty over the territory’s post-Brexit status.
Forced displacement worldwide has hit a record 122.1 million, driven by conflicts in Sudan, Ukraine, and beyond, as humanitarian needs soar.
Thousands gathered for a sixth straight night of protests in downtown Los Angeles on Wednesday, condemning President Donald Trump’s immigration raids as federal forces remain deployed in the city.
Romania deployed fighter jets early Thursday after Russian drone strikes targeted Ukraine’s Vylkove region near the Romanian border, though no airspace violations were detected.
Ukraine and Russia completed another prisoner exchange involving ill and severely wounded soldiers, marking ongoing efforts to ease the human toll of their conflict.
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