German economy lags behind according to OECD forecast: Better prospects for 2026

Paris. Trade conflicts, expensive energy, and other strains are leaving the German economy with little breathing room this year, according to the OECD. The Organization for Economic Co-operation and Development (OECD) has maintained its forecast for 2025 at a minimal growth rate of 0.4 percent. Among the more than 50 countries surveyed, only Norway and Austria fared worse.

Trade barriers and the associated uncertainties have increased dramatically in recent months, according to OECD Chief Economist Álvaro Pereira. This is slowing growth. "The weaker economic outlook will be felt almost without exception throughout the world."

Experts, however, expect a slight upturn next year: Instead of 1.1 percent, the German economy is expected to grow by 1.2 percent. They cite an end to domestic political uncertainty, the government's expected investment offensive, and rising consumption as reasons for this.

Germany has been suffering from a sluggish spending mood for years: Consumers are holding on to their money because prices have risen significantly as a result of the war in Ukraine. But even though inflation has returned to normal, private consumption hasn't picked up recently – according to the OECD, this will change in the coming year.

However, the figures should be treated with caution. Depending on the outcome of the various trade conflicts, the results could be significantly different.

RND/dpa