Joint Economic Forecast for the German Economy #1-2025 – Geopolitical Turmoil Intensifies Crisis – Structural Reforms Even More Urgent

The German economy is still in crisis. The beginning of 2025 is characterized by significant domestic and foreign policy changes. In Germany, economic policy uncertainty is high in view of the change of government. At the same time, the USA's protectionist trade policy is weighing on the German economy. In addition, the security situation in Europe has deteriorated with the new government in the USA. Against this backdrop, the Bundestag and Bundesrat have fundamentally changed Germany's financial constitution and created far-reaching scope for public debt.