ArmInfo. Europe's largest economy continues to struggle to accelerate economic growth, as geopolitical uncertainty, high operating costs, and weak domestic demand weigh on companies. GDP growth in 2026 will be largely driven by statistical and calendar factors.
German companies cite weak domestic demand (59%), rising labor costs (59%), economic policy uncertainty (58%), and high energy and raw material prices (48%) as the main risks. Investment plans remained subdued: 23% of respondents intend to increase spending, while 31% plan to reduce it.
Germany's GDP by the end of 2025 will increase by 0.2% adjusted for inflation, according to preliminary estimates from the statistical agency. Economic growth adjusted for inflation and calendar factors amounted to 0.3%.
Prior to this, the country experienced a two-year recession. In 2024, GDP declined by 0.5% and in 2023 by 0.9%, adjusted for inflation. Adjusted for the calendar year, the declines were 0.5% and 0.7%, respectively.
