"The annual assessment by the Council of Economic Experts at the Chancellery in Berlin is always something of a report card moment. And this is first time the panel has presented a report to the government of Chancellor Friedrich Merz (CDU), which took office six months ago. It is particularly important because the coalition of the conservative Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU) and the center-left Social Democrats (SPD) have declared economic growth a top priority."
"But the fact is that the German economy is not emerging from its crisis. No real upturn in sight Gross domestic product (GDP), which is the sum of all economic output, is expected to grow by a measly 0.2% this year. In 2026, it is expected to be 0.9 percent. But in the light of the past few years, it is at least something."
"However, Germany is clearly lagging behind its European counterparts and is a long way from a real upturn. "For the economy to get back on a sustainable path of growth, productivity must increase, particularly through more innovation and investment," warned Schnitzer. She also said Germany had to develop new growth and security policy perspectives in view of the current geopolitical and structural challenges."
An annual economic assessment presented to the federal government highlights persistent weakness in the German economy and an absence of a robust upturn. GDP growth is forecast at just 0.2% this year and 0.9% in 2026, following two years of recession. Germany lags behind European peers and needs higher productivity driven by innovation and greater investment to return to sustainable growth. New growth and security policy perspectives are required given geopolitical and structural challenges. A Special Fund for Infrastructure and Climate Neutrality allows loans up to 500 billion euros for projects, while budgetary shortfalls are being plugged instead of prioritized investment.
Read at www.dw.com
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