Germany's economic outlook remains bleak as the "Wirtschaftsweisen," or Council of Economic Experts, predict only a modest growth of 0.4% for 2025. This comes after a slight contraction of 0.1% in 2024, highlighting the country's ongoing economic stagnation.
The council's annual report points to Germany's industrial weakness and high labor costs as key factors hindering growth.
Despite global economic expansion, Germany's export-driven economy is not benefiting as it once did, due to increased production costs and decreased competitiveness.
The council suggests reforms in labor costs and increased automation to improve productivity.
Additionally, they recommend redirecting state spending towards future-oriented investments in infrastructure, education, and defense to stimulate growth.
