"We must fight to return to growth. And we must fight to keep Europe strong. So we need the courage to implement decisive reforms."
"The economy is far from running smoothly,"
"that the risk of yet another quarter of contraction and thus an outright technical recession is very real"
The economy ministry forecasts 0.2% growth in 2025, avoiding a third consecutive recession, with growth rising to 1.3% in 2026 and 1.4% in 2027. Much of the medium-term momentum is expected to come from a special fund for infrastructure overhaul and increased defence spending enabled by looser debt rules. Persistent headwinds include volatile US trade policy and China's growing industrial competition, while structural weaknesses such as onerous bureaucracy require deeper reforms. Recent industrial production fell sharply in August, especially in the automotive sector, raising the real risk of further contraction.
Read at The Local Germany
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