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Macro - Country Economic Forecasts - Germany

Publisher Oxford Economics
Published Aug 19, 2025
Length 8 Pages
SKU # OFE20317558

Description

Recent data broadly supports our baseline. GDP contracted by the expected 0.1% q/q in Q2, and the latest data points to continued softness in Q3 as industrial weakness offsets consumer resilience. Revisions to past data mean that we expect 0.3% growth this year, up by 0.1ppt from last month, but are more cautious for 2026, expecting 0.8% growth, down 0.2ppts.

Table of Contents

8 Pages
Germany: Expected Q2 GDP contraction leaves outlook unchanged
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Long-term prospects
Alternative long-run scenarios
Background
Economic development
Structure of the economy
Balance of payments and structure of trade
Policy
Politics

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