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German Economy Expected to Grow Amid Ongoing Challenges
Germany's economy is projected to grow by 1.3% in 2026 and 1.1% in 2025, supported by government spending and a robust export sector. However, challenges such as high energy prices, a shortage of skilled workers, and increasing debt may hinder long-term growth, with forecasts predicting a slowdown to 0.4% by 2028. Economists emphasize the need for reforms to improve the business environment and address labor shortages.
People
Oliver Holtemöller
Stefan Kooths
Helena Melnikov
Timo Wollmershäuser
Our neutral summary
Germany's economy is projected to grow by 1.3% in 2026 and 1.1% in 2025, supported by government spending and a robust export sector. However, challenges such as high energy prices, a shortage of skilled workers, and increasing debt may hinder long-term growth, with forecasts predicting a slowdown to 0.4% by 2028. Economists emphasize the need for reforms to improve the business environment and address labor shortages.
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