(Finance) – The Bundesbank cuts Germany’s GDP growth estimates. The German economy is expected to contract by 0.2% this yearagainst the forecasts of an expansion of 0.3%, indicated in June. For next year the outlook was, however, cut to 0.2% from 1.1%.
The economic recovery has not yet materialized, the German economy is not only grappling with persistent headwinds, but also structural problems, he warned Joachim NagelPresident of the Bundesbank, on the occasion of the presentation of the December forecasts of the German Central Bank. The crisis, he explained, has particular repercussions on industrial sectorexports and investments. Also the labor market is clearly reacting to the prolonged weakness of economic activity, Nagel added, underlining that this is weighing on private consumption.
For 2026 and 2027, growth of 0.8% and 0.9% is expected.