Sunday, 11 May 2025
Germany is set to remain at the bottom of the league of industrialized nations, with a projected growth rate of just 0.4% by 2025, according to the latest Economic Experts Survey conducted by the ifo Institute and the Institute for Swiss Economic Policy. The survey, which gathered insights from 1,398 economic experts, paints a concerning picture of Germany’s economic trajectory.
“Germany urgently needs a shift in economic policy to reignite growth,” warned ifo researcher Niklas Potrafke. He emphasized that Germany has lost significant ground in the global competition for business attractiveness, calling for market-oriented reforms from the government to address these challenges.
On a global scale, economic growth projections appear more optimistic. The surveyed experts predict a 2.9% global growth rate for 2025, a modest increase from the 2.6% forecast for 2024. Africa (3.9%) and Asia (3.8%) are expected to see the strongest growth, while Europe (2.1%) and North America (2.4%) anticipate more modest increases.
Looking ahead, the outlook for the global economy remains positive, with 3.2% growth projected for 2026 and 3.1% for 2028. While Germany’s growth expectations improve slightly to 1% in 2026 and 1.3% in 2028, they still fall significantly below the average of other industrialized nations.
The findings reinforce growing concerns about Germany’s economic stagnation, highlighting the urgent need for policy changes to enhance competitiveness and stimulate long-term growth.
Source: ifo Institute and the Institute for Swiss Economic Policy
