German banks predict economic recovery in 2025

FRANKFURT, Sept. 25 (Xinhua) — The German economy is expected to recover slowly in 2025, rather than in the second half of this year, as indicated by a survey of chief economists from leading German banks published on Wednesday.
In a major revision to their earlier assessment, 15 chief economists from leading German banks have pushed back the timeline for an economic recovery to next year, the Federal Association of German Banks said in a statement.
Consumption and investment have fallen short of expectations, leading to a revised forecast of only 0.7 percent growth in economic output for 2025.
This prediction aligns with the forecast from the Macroeconomic Policy Institute (IMK), which also anticipates a recovery in 2025.
Real disposable income is projected to increase further next year, which is expected to encourage consumers to spend more and boost the economic recovery.
Germany has not made progress on reforms for a long time, said Holger Schmieding, chief economist of Berenberg Bank and Chairman of the Committee for Economic and Monetary Policy of the Federal Association of German Banks. He urged policymakers to enhance conditions that would boost consumer confidence in purchasing and encourage companies to invest. ■