cross-posted from: https://lemm.ee/post/64561299

The number of German firms closing their doors for good rose last year by as much as 16% on the year to 196,100, the Creditreform agency and the ZEW economic research institute reported on Wednesday.

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    1 day ago

    Germany is not coming back.

    Economic forecast for Germany

    TLDR:

    • Economic activity is expected to stagnate in 2025 due to trade tensions weighing on exports
    • Private consumption is nevertheless projected to expand slightly in 2025, boosted by increases in purchasing power and lower interest rates
    • Investment is expected to stagnate in 2025 - also related to the elevated geopolitical uncertainty
    • In 2026, growth is projected to rebound to 1.1%, as domestic demand strengthens, driven by continued consumption growth and a gradual recovery in investment.
    • (Note that government spending -especially infrastructure and defense spending- will have a positive effect on GDP growth in 2025 and 2026, but are not yet included in this forecast as the government has not yet detailed its intentions.)