Germany's economy is in a slump: Is the big crash still to come?
The German economy continues to show little signs of a real recovery. New forecasts from the Council of Experts have been revised downwards: For 2026, only a growth of 0.5% is expected, while inflation could rise again to around 3%. This puts increasing pressure on Friedrich Merz's government.
Germany is particularly hard hit by high energy prices, the fallout from the Iran crisis, and increasing competitive pressure from China. Experts also warn of structural issues like an aging population, rising social costs, and dwindling industrial competitiveness. Many companies are now openly questioning whether Germany's economic success model can still be salvaged.
The German economy continues to show little signs of a real recovery. New forecasts from the Council of Experts have been revised downwards: For 2026, only a growth of 0.5% is expected, while inflation could rise again to around 3%. This puts increasing pressure on Friedrich Merz's government.
Germany is particularly hard hit by high energy prices, the fallout from the Iran crisis, and increasing competitive pressure from China. Experts also warn of structural issues like an aging population, rising social costs, and dwindling industrial competitiveness. Many companies are now openly questioning whether Germany's economic success model can still be salvaged.