Berlin: Joachim Nagel, President of the German Central Bank (Bundesbank), has forecast continued weak economic growth in Germany through 2025, urging the incoming government to accelerate the implementation of its structural programme to stimulate recovery.
According to Bahrain News Agency, Nagel indicated that the outlook points to weak economic growth in 2025, which could be described as stagnation. He warned of the expected effects of US tariff policies, which are anticipated to become apparent early in the year, leading to weaker performance in subsequent quarters.
Nagel highlighted the need for swift implementation of the government's plans, particularly in infrastructure and future technologies, which amount to EUR 500 billion (USD 565 billion). He termed such investment as crucial for strengthening economic growth.
He also expressed optimism that inflation in the eurozone would reach the European Central Bank's target of 2% by the end of the year, noting that this would be beneficial for individuals and businesses. Addressing concerns about the potential inflationary impact of the government's economic programme, Nagel dismissed these worries if the focus remains on investment, pointing out possible price reductions in sectors such as energy.