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1h ago

OECD Trims Germany’s 2025 Growth Outlook to 0.3% as Trade Risks Mount

The Paris-based body cites softer industry and labor demand, warning that recent U.S. tariff hikes could deepen the drag.

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Die deutsche Wirtschaft verharrt in ihrer Wachstumsschwäche. Die Organisation für wirtschaftliche Zusammenarbeit und Entwicklung (OECD) senkte ihre Prognose für das Wirtschaftswachstum im laufenden Jahr leicht um 0,1 Prozentpunkte auf 0,3 Prozent.

Overview

  • Germany’s 2025 GDP forecast was cut by 0.1 percentage points from June to 0.3%, leaving it near the bottom of the OECD pack.
  • The OECD now sees Germany growing 1.1% in 2026, down from a 1.2% projection in June, signaling only a modest recovery.
  • Global growth is forecast at 3.2% in 2025, up 0.3 points from June, with 2026 unchanged at 2.9%.
  • U.S. tariff rates have risen since May, with the OECD estimating an effective import tariff near 19.5%, and it says the full impact has yet to show.
  • The report notes weakening German labor-market indicators and recent declines in industrial output, and flags risks such as renewed trade tensions, inflation pressures and crypto volatility alongside potential upside from easing trade barriers or AI.