The German economy is expected to grow by 0.3% in 2025, according to the Berlin-based economic research institute DIW, an improvement from the earlier forecast of 0.1%. This optimism follows a surprisingly strong growth of 0.4% in the first quarter of 2024. DIW predicts growth will accelerate towards the end of the year thanks to a large investment package approved by the German government, including an infrastructure fund and relaxed borrowing rules related to defense investments. The overall growth forecast for 2024 is now 1.7%, up from the previous estimate of 1.1%.
Political Perspectives:
Left: Left-leaning sources emphasize the role of government investment and public spending in driving the economic growth, highlighting the positive impact of the investment package and infrastructure fund. They may also stress the importance of social policies and sustainable development in the economic outlook.
Center: Center-leaning sources report the economic growth forecast factually, focusing on the data from DIW and the government’s investment plans without strong ideological framing. They present the growth as a moderate improvement and note the factors contributing to it, such as the strong first quarter and government measures.
Right: Right-leaning sources might emphasize the importance of market dynamics and private sector resilience in the growth, possibly downplaying government intervention. They may highlight the cautious optimism due to global economic uncertainties and stress the need for fiscal responsibility despite the investment package.
