By Maria Martinez<\/p>\n
BERLIN (Reuters) -Germany’s Ifo institute cut its economic outlook on Thursday and warned that without credible delivery on pro-growth measures, Europe’s largest economy risks more years of stagnation.<\/p>\n
The Munich-based institute expects gross domestic product to expand marginally by 0.2% in 2025 and 1.3% in 2026, shaving 0.1 and 0.2 percentage points from its summer projections.<\/p>\n
For 2027, Ifo forecasts growth of 1.6%.<\/p>\n
U.S. tariffs continue to weigh noticeably on the German economy, said Timo Wollmershaeuser, head of forecasts at Ifo.<\/p>\n
Germany has struggled to regain momentum after two years of contraction, hit by weak global demand, high energy costs and a slide in industrial output.<\/p>\n
“If economic policy remains at a standstill, further years of economic paralysis and erosion of Germany as a business location threaten,” Timo Wollmershaeuser said.<\/p>\n
Ifo analysed the expected boost from Berlin’s planned economic policy, estimating the fiscal impulse at 9 billion euros this year, rising to 38 billion euros in 2026 and 19 billion euros in 2027.<\/p>\n
Ifo expects the unemployment rate to rise to 6.3% this year, with joblessness up by 155,000 people, before easing to 6.1% in 2026 and 5.4% in 2027.<\/p>\n
Inflation is seen at 2.2% this year and 2.1% in 2026, after an average 2.2% in 2024.<\/p>\n
(Reporting by Maria Martinez, Editing by Rachel More)<\/p>\n","protected":false},"excerpt":{"rendered":"By Maria Martinez BERLIN (Reuters) -Germany’s Ifo institute cut its economic outlook on Thursday and warned that without…\n","protected":false},"author":2,"featured_media":396877,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5310],"tags":[31376,5211,2000,299,1824,6559,73382],"class_list":{"0":"post-396876","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-germany","8":"tag-economic-outlook","9":"tag-economic-policy","10":"tag-eu","11":"tag-europe","12":"tag-germany","13":"tag-ifo-institute","14":"tag-timo-wollmershaeuser"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115145303994205076","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/396876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=396876"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/396876\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/396877"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=396876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=396876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=396876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}