ifo Economic Forecast Spring 2025: German Economy Treading Water

The German economy is treading water. Structural change and uncertainty are paralyzing industrial activity and the consumer economy. Price-adjusted gross domestic product is expected to increase in 2025 only slightly by 0.2 percent year over year. As a result, the growth forecast compared to the ifo Economic Forecast Winter 2024 has been lowered by 0.2 percentage points for this year. Growth of 0.8 percent is expected for the coming year, in line with the ifo Economic Forecast Winter 2024. Against the backdrop of the upcoming economic policy decisions in Germany and the United States, there is a high risk that the forecasts might prove wrong.