Germany's economy hits the bottom and rebounds? Institutions raise growth forecasts for this and next year.

Two economic research institutions said on Thursday that after two consecutive years of contraction, the German economy is expected to grow this year, while also raising their forecasts for the German economy in 2025 and 2026. The Kiel Institute for the World Economy has raised its forecast for economic growth in Germany in 2025 from 0% to 0.3%, following better-than-expected economic growth of 0.4% in the first quarter. Economists said, "The German economy is seeing the light at the end of the tunnel." The institution is also more optimistic about next year, raising its forecast for economic growth in 2026 from 1.5% to 1.6%. The RWI Leibniz Institute for Economic Research, on the other hand, expects the German economy to grow by 0.3% and 1.5% in the next two years. RWI forecast director Torsten Schmidt said that despite the short-term burden brought by trade policy uncertainty, the economy will gradually recover in the second half of this year. He said, "What is important now is that the federal government takes action after announcing." It is reported that the German cabinet approved a 460 billion euro tax reduction plan last week to support businesses and revitalize the struggling economy. In addition, the German parliament also approved a plan in March to significantly increase spending.