German economy forecast to grow after two years of contraction

Published 12/06/2025, 08:38
German economy forecast to grow after two years of contraction

Investing.com -- The German economy is set to grow this year after two consecutive years of contraction, according to the Kiel Institute for the World Economy (IfW).

On Thursday, the economic institute raised its 2024 growth forecast to 0.3% from its previous prediction of stagnation.

This upward revision comes after Germany’s economy performed better than expected in the first quarter, when it expanded by 0.4%.

"The German economy is seeing some light at the end of the tunnel," the IfW economists stated in their new forecasts.

The institute also expressed greater optimism about the future economic outlook for Europe’s largest economy. It increased its growth forecast for 2025 to 1.6%, up from its earlier projection of 1.5%.

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