No hope for growth in the German economy: Downgraded to 0 percent!

German Minister for Economic Affairs and Climate Action Robert Habeck held a press conference in the capital, Berlin, regarding the economic growth report published by the government.

Stating that the official growth forecast for 2025, which was announced as 0.3 percent in January, has been lowered to 0 percent, Habeck noted that the growth projection for 2026 has been revised from 1.1 percent to 1 percent.

Habeck emphasized that the economy is going through a difficult period following two consecutive years of recession, and stated that the German economy is once again facing major challenges due to the unpredictable trade policy of the US.

Robert Habeck cited the threat and implementation of customs duties by US President Donald Trump as the reason for the downward revision in the growth forecast, noting their strong impact on the export-oriented German economy.

Habeck, who will hand over his duties in a short time, said, "Given the close integration of the German economy into global supply chains and its high degree of openness to foreign trade, the new US protectionism could have significant direct and indirect effects on our economic growth."

Noting that there is homework that the next federal government must also carry out during this challenging geopolitical and economic process, Habeck stated that the new coalition government, expected to be formed on May 6, must address the shortage of skilled labor, increase investments, and ensure greater digitalization.

German Minister for Economic Affairs and Climate Action Robert Habeck said, "It will be very important for us to do our own homework."

News Source: 12punto