German financial system anticipated to stagnate in 2025, IfW Kiel says

BERLIN (Reuters) – The German financial system is predicted to stagnate subsequent 12 months following two consecutive years of contraction, the IfW Kiel Institute for the World Economic system mentioned on Thursday.

The institute lower its earlier forecast of 0.5% progress from September.

“The German financial system can’t break away from stagnation,” mentioned the financial institute in its report. “There are hardly any indicators of a noticeable financial upturn.”

For 2026, IfW Kiel forecast 0.9% progress, additionally downwardly revising its earlier forecast of 1.1% progress.