German economic institutes cut 2025 GDP forecast even before accounting for latest tariffs

Despite that, German economic institutes see the economy only growing by 0.1% this year. That is a downgrade from their previous projection of 0.8% in September. As for 2026, they see the economy growing by 1.3% – unchanged from previously. The main boost for German growth next year will come from the fiscal package that will see additional government spending of around €24 billion. They see that adding 0.5% to economic growth.

This article was written by Justin Low at www.forexlive.com.