BERLIN (Reuters) – The OECD has cuts its forecast for the German economy next year while maintaining its forecast for stagnation in the current year, it said on Wednesday.
The world’s third-largest economy is expected to grow by 0.7% in 2025, down from a previously forecast 1.1%.
For 2026, the OECD forecasts an acceleration of growth to 1.2%.
Low inflation and rising wages will support real incomes and private consumption, the OECD said in its economic outlook.
“Private investment will gradually pick up, supported by high corporate savings and slowly declining interest rates, but policy uncertainty will continue to weigh on investor confidence,” the OECD.
Europe’s biggest economy will continue to be a laggard in the two coming years, growing below the euro-zone average of 1.3% for 2024 and 1.5% in 2025.
(Reporting by Rene Wagner and Maria Martinez, editing by Rachel More)
