Overview
- Federal statisticians report a public-sector deficit of about 2.4% of GDP in 2025, roughly €107 billion, down from 2.7% in 2024.
- Exports fell for a third year, with officials citing higher U.S. tariffs, tougher Chinese competition and a stronger euro.
- Investment remained weak across equipment and construction, underscoring lingering structural drags.
- Output likely grew 0.2% quarter on quarter in the fourth quarter of 2025, indicating a modest year-end pickup.
- Forecasters expect roughly 1% growth in 2026 supported by more workdays and state spending, with a firmer upturn projected for 2027 if major programs take effect.