madeforgermany

Germany Eyes Recovery After Prolonged Slowdown ‼️

Germany’s economy continues to face stagnation, with GDP contracting 0.3% in 2023 and 0.2% in 2024, but major investment plans are setting the stage for a rebound.

Market Overview
• Investment: 21.2% of GDP (down slightly from 21.7%)
• FDI: Fell by $23.3B in Dec 2024
• Outlook: Broad stagnation expected through 2025 before recovery

Key Initiatives
• “Made for Germany” — 105 major firms pledging €735B by 2028
• Government stimulus: €500B infrastructure fund + higher defense spending
• InvestBooster Program: 30% tax depreciation + lower corporate tax rates ahead

Economic Outlook
• Growth expected to return in 2026 (0.7–1.4%) and strengthen into 2027 (1.2–1.8%)
• Combined public-private investments may lift GDP +2% annually from 2026 onward

Risks Ahead
High energy costs, labor shortages, and global trade tensions remain key threats. Still, these reforms and investments could mark a turning point for Europe’s largest economy.
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