Germany economy outlook: Growth forecast rises to 0.2% in 2025; rebound expected at 1.3% in 2026

Germany's economic outlook has brightened, with the government now anticipating a slight avoidance of stagnation in 2025 and a 1.3% growth in 2026. Economy Minister Katherina Reiche stressed the need for decisive reforms, including lower energy prices and tax reductions, to boost the economy. Despite this optimism, the manufacturing sector still grapples with high energy costs and global competition.