US EditionGermany must move quicker on reforms, say experts
Experts warn Germany’s 0.2% growth forecast for 2025 risks fading without faster, potentially painful reforms to address structural economic challenges, they said.
- On September 25, 2025, leading German economic institutes warned that Germany must accelerate structural reforms to revive its stagnating economy.
- This warning followed Chancellor Friedrich Merz’s pledge of debt-funded infrastructure and defence spending, amid criticism for slow reform progress.
- Experts noted persistent high costs, skills shortages, and weakening competitiveness, with the economy likened to a junkie briefly boosted by spending.
- Seven institutes raised the 2025 growth forecast to 0.2%, but emphasized that without clear reforms, this short-term boost will fade soon.
- The situation implies that Germany must implement potentially painful reforms quickly to secure sustainable growth and prevent economic decline.
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59 Articles
From the point of view of leading research institutes, the German economy is slowly coming back into momentum next year. However, growth is driven mainly by government billions of investments. The economy is still on "wabbly feet", said Dany-Knedlik, economic expert at the German Institute for Economic Research in Berlin.
The German economy seems to be finally leaving the recession behind and is likely to regain some dynamism in the next two years, as the country’s major economic research institutes have pointed out this Wednesday in their autumn forecast. Following the stagnation of the first half of the year, experts expect a GDP increase of 0.2% at the end of the year. “In the next two years,” the report writes, “it should significantly accelerate economic gro…
Sun Newspapers
Germany must move quicker on reforms, say experts
Germany must move quicker with potentially painful reforms, experts warned Thursday, in the latest sign of unease at Chancellor Friedrich Merz's efforts to turn the struggling economy around.
Germany's economy is under great pressure. Researchers recommend reforms: less bureaucracy, stricter pension regulations, staff cuts in the administration. They also call for adjustments in environmental policy.
Deutsche Welle
DNyuzGermany updates: Economists warn recovery may be short-lived
Economists have predicted modest growth for Germany, but warned that this will wither on the vine without major reforms. Meanwhile, arms exports to Israel are down to zero after tighter restrictions. DW has more.
Only 0.2 growth in the current year: According to experts, the economy in Germany will only recover slightly in the next two years. However, this is only because the federal government takes a lot of money into its own hands.
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