Standard & Poor's announces: Germany's credit rating outlook is 'stable'

International credit rating agency S&P has updated Germany's credit rating, confirming it at 'AAA/A-1+' for both long-term and short-term foreign and local currency. The agency stated that it has maintained the country's credit outlook as 'stable.' Growth data released in Germany last week had sparked concerns of an 'economic stagnation.' The S&P report supported the view that the German economy has entered a period of 'stagnation.'

In its assessment of the German economy, S&P reported that the country's economic recovery process is continuing. The agency pointed out that high savings rates have begun to decline. On the other hand, S&P stated that with an increase in investments, Germany's gross domestic product (GDP) growth is expected to be 0.5 percent in 2025 and 1 percent in 2026.

The statement emphasized that potential US customs tariffs pose a risk to Germany's export-oriented economy.

The agency noted that Germany's credit rating remains at the highest level due to its strong economic structure and stable fiscal policies. S&P projects that the country's 'economic resilience' will continue in the medium term. However, the data in the institution's report also highlighted the risk of economic stagnation.

'As one of the world's largest exporting countries, Germany is directly affected by changes in global trade policies' (S&P)

News Source: AA