The German economy does not come out of the crisis. The executive federal government lowers its economic forecast. You can expect a stagnation of gross domestic product for the current year, as the Managing Minister Robert Habeck (Greens) said in Berlin. According to the spring forecast, the German economy would not grow for the third year in a row.
In January, the government had expected an increase of 0.3 percent, now 0.0 percent awaits it. Habeck said the numbers were not satisfactory. He will soon be out of office.
Economy in a long phase of weakness
It was only in January that Habeck screwed the growth expectations for 2025 down when the annual economic report was presented. Last autumn, the government forecasted a gross domestic product of 1.1 percent.
US customs policy is burdening German economy
The economic uncertainty worldwide has increased significantly by the tariffs announced by US President Donald Trump and sometimes exposed again, according to the ministry. As a result, turbulence on the international financial markets and a clouding of global growth prospects had occurred. This affects the German economy, which is strong of exports – the demand abroad is weak anyway.
How 2026 will be
The government does not expect a noticeable upswing in the coming year. It expects growth of 1.0 percent. “Positive impulses will be based on the financial policy course of the future federal government, which will only contribute to growth in the coming years.”
The expected new federal government of the CDU, CSU and SPD has announced extensive measures in the coalition agreement to boost the economy. Examples are an “investment booster”, and better depreciation options for companies are planned. The coalition also wants to reduce energy costs, flexible labor law, reduce bureaucracy and reduce corporate taxes. Costs are to be reduced when expanding renewable energies.
Structural reforms
According to the coalition agreement, the aim is to increase the so -called potential growth again to well over one percent. This has been down for ten years, said Habeck.
In order to boost growth, huge investments should also contribute primarily to the preservation of the infrastructure – it is about the renovation of bridges, streets, rail routes or schools. “But money alone does not solve a problem,” said Habeck. The structural problems would have to be tackled consistently.
Habeck said that shortly after the election with the Greens, the special fund of 500 billion euros for infrastructure and climate protection should have been decided in retrospect for Ukraine 2022 after the start of the Russian war of aggression.
Economy: New government has to act
As a core problems, business associations repeatedly mean a lack of workers, long planning and approval processes or in international comparison, high energy costs. Marie-Christine Ostermann, President of the Association Family Enterprise, said Habeck said goodbye with a “disastrous balance”. DIHK general manager Helena Melnikov emphasized: “If the new federal government does not determine and quickly counterstick, we even threaten a significant third of the recession in a row.”
Inflation drops – more unemployed are expected
According to the spring project, the inflation rate should decrease from 2.2 percent last year to 2.0 percent in the current year and 1.9 percent in 2026.
In view of the continued -clouded economic outlook, the usual spring revival on the labor market is weak from the ministry’s point of view. Employment is likely to decrease this year, unemployment increase. According to the forecast, more employment and fewer unemployed will come again next year.
According to figures from the Federal Employment Agency, the number of unemployed fell by 22,000 to 2.967 million people in March. But that was the weakest decline in unemployment in March since 2009.
Time -term time by crises
Habeck has been Minister of Economics and Climate Protection and Vice Chancellor since the end of 2021. His term was characterized by the consequences of the Russian war of attack on Ukraine and the resulting energy price crisis. With comprehensive measures, the government was able to prevent the economy’s dramatic crash. During the term of the Greens politician, the expansion of renewable energies from wind and sun also clearly absorbed speed.
Habeck was also criticized, for example, because of the controversial heating law with many small -scale regulations that want to abolish the Union and the SPD. In economic policy, Habeck has repeatedly campaigned for massive, debt -financed government spending in order to make investments in companies – but he could not prevail against the FDP in traffic lights.
Anyone who succeeds Habeck is open, the post occupied the CDU. The Greens politician said the core tasks remained. With a view to the USA and China, he called disorders in world trade, the necessary diversification of trade relationships and one of the expansion of critical goods such as semiconductors in Europe. Habeck’s message: The previously opposition Union will quickly arrive in reality.
Habecks: New door opens
Habeck was covered in his personal future and did not want to comment on corresponding questions. Shortly before Easter there were media reports that he only wanted to belong to the Bundestag until the summer break. Green Group leader Britta Haßelmann then said that it was not discussed that Habeck would give his mandate back before the summer. In the future, he will take care of the relationship between Germany and the USA in the Federal Foreign Committee.
Habeck said on a question with which feeling he was doing out of office: “When doors go, they always work.”
