Economy

German ministry warns 2025 uncertainty to weigh on economic recovery

BERLIN (Reuters) – Germany can only hope for a tangible economic recovery once there is clarity on the economic, financial and geopolitical outlook, the economy ministry said in its monthly report on Wednesday, after annual data showed a 2024 recession.

Global production of industrial products is modest as is the outlook for German trade, the report warned.

“As the year progresses, however, inflation-dampening factors such as the moderate price trend at upstream economic levels, the after-effects of restrictive monetary policy and lower wage settlements are likely to gain the upper hand,” it added.

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