A German institute expects his country’s economy to shrink this year
Cologne on May 13 / WAM / The German II Doubleo Institute for Economic Research expected that Germany’s GDP this year will shrink 0.2%.
The institute also attributed its expectations to the state of global uncertainty, the continuous decline in investments and the high costs of Germany as an economic site and the reluctance of many Germans from large purchases, adding in a statement: “The country will remain in a stagnation.”
It is noteworthy that the gross domestic product of Germany shrinks last year by 0.2%.
According to the institute, his estimates indicate that without the US customs duties policy, the global economic product could be expected by 0.8% this year.
The institute pointed out that the state of “international uncertainty” prevents many companies from investing, adding that “the largest purchases in particular, such as machines and new vehicles, are witnessing a decrease.”
He said that the situation is especially dark in the industry and construction sectors in Germany, and that: “After a decline of 3% in 2024, industrial companies will again achieve a less added value this year compared to the previous year due to high energy prices, high wages, and the burdens of many organizational regulations.”
He explained that after losses of 3.7% in 2024, construction companies will have to accept more decline in 2025, explaining that the high construction costs resulting from organizational rules also hinder any recovery in the sector. The institute indicated that this development has now reached the labor market as well, as the number of workers has been declining since mid -2024.
“By summer, the number of unemployed people across the country is likely to reach three million people again,” the statement said, noting that the last time it happened was in 2010.
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