Germany's Economy Shows Signs of Slight Growth After Two-Year Recession

Industrial and construction activity drive projected Q1 2025 growth, but weak consumer spending and U.S. trade policies cloud outlook.

The Bundesbank projects slight economic growth for Germany in Q1 2025, following two consecutive years of recession.
Industrial and construction sectors saw increased production in January, aided by favorable weather conditions.
Consumer spending remains subdued due to job concerns, limiting its contribution to economic recovery.
Economists see potential long-term benefits from Germany's federal stimulus package, which targets defense, infrastructure, and climate initiatives.
Significant uncertainty persists due to restrictive U.S. trade policies, while official Q1 data will be released in late April 2025.