Economic growth: Germany is lagging behind | tagesschau.de

Economic experts are drawing a bleak scenario for Germany: The Federal Republic will be one of the weakest countries in the world with its economic performance this year.

0.6 percent – this is how low the economic growth experts expect Germany to achieve this year. This is according to what was published today “Economic Experts Survey” from the Munich Ifo Institute and the Institute for Swiss Economic Policy, for which 1,431 economic experts from 124 countries were surveyed in December. For comparison: The global growth rate is expected to be 2.6 percent – and therefore slightly below the previous year’s level (2.7 percent).

Only Sweden and Great Britain are even weaker

This means that Germany remains a “problem child” when it comes to economic growth; the Federal Republic continues to lag behind other countries, explained ifo researcher Klaus Gründler. In fact, there are only two countries for which experts predict even lower growth rates: the experts surveyed expect growth of 0.5 percent for Great Britain, while Sweden’s economy is expected to grow by 0.4 percent.

The forecasts also remain rather cautious for Austria (0.9 percent) and Switzerland (1.3 percent). In a European comparison, Spain is ahead with an increase of 2.0 percent, Poland and Ireland (both 2.8 percent) and Iceland (3.3 percent).

Africa and Asia on the rise

Overall, Western Europe is expected to grow by 1.1 percent this year and Northern Europe by 1.4 percent – making them the weakest sub-regions globally. The experts are also rather cautious for America, with forecast growth of 2.3 percent. West Africa, on the other hand, is expected to record strong growth rates at 4.4 percent and Southeast Asia at 4.7 percent.

According to expert estimates, Africa and Asia are also likely to grow the fastest in the medium to long term, with expected rates of over four percent. The German economy, on the other hand, is likely to lag behind, with the experts surveyed expecting growth of 1.2 percent for 2025 and an increase of 1.5 percent for 2027. Globally, growth of 2.9 percent is expected for 2025 and an increase of 3.3 percent for 2027.