The German economy is set for slight growth in the final quarter of 2025, signaling renewed optimism for one of Europe’s largest trading nations. According to the Macroeconomic Policy Institute (IMK) at the Hans Boeckler Foundation, the latest economic indicator shows a recession probability of only 34.8%, suggesting stability and gradual recovery.
While exports dipped in August due to softer demand from overseas markets, experts note that Germany’s diversified trade base and strong domestic sectors continue to provide resilience. Industrial output and new orders are expected to stabilize as global trade flows adapt and internal demand strengthens.
Sebastian Dullien, research director at IMK, expressed confidence in the country’s balanced growth outlook. “Although exports to overseas markets have slowed, foreign trade remains a key pillar, and domestic momentum is creating room for a steady upswing,” he said.
The outlook points to a positive trajectory for Germany’s economy, supported by both local consumption and ongoing international trade activity.
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