The German government on Wednesday announced an economic expansion prognosis of 0. 3% by 2025, below the 1. 1% prognosis last October.
The shrunk growth projections come amid the return of US President Donald Trump to the White House and the upcoming federal elections next year.
A report through the Ministry of Economy hoped that the poor economic functionality of Germany was also larger for this year, after two years of recession.
“Germany is caught in stagnation,” Economy Minister Robert Habeck, at a press convention in Berlin.
The report indicates that the review of the prognostic expansion “mainly due” to the Government Cave last November, which led to an interruption of the measures aimed at inspiring the expansion.
Chancellor Olaf Scholz’s coalition government collapsed in November, after his Social Democrats (SPD) and the Greens fell out with their coalition partner, the neoliberal Free Democratic Party (FDP), over budget disagreements.
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While Europe’s biggest economy awaits anew government following the February 23 elections, the country’s future economic policy remains uncertain.
The report also said the downgrade was due to the “significantly” increased risks to trade, amid the return of US President Donald Trump to the White House, and the potential changes to US policy he could introduce.
Meanwhile, a survey conducted by fund provider Union Investment found that 53% of the respondents expected their own financial situation to remain stable in the next 12 months, while 30% even believed it would improve.
rmt/jcg (AFP, dpa)