The German government of Germany on Wednesday’s forecasts on the rate of growth of the largest eurozone economy proceeded on Wednesday, raising fears that if the situation is deteriorating the country could remain in recession for a third consecutive year.

In particular, the government considers that The country’s GDP will increase this year by just 0.3%that is, it will run at a significantly milder than the 1.1% of October.

“The diagnosis is serious,” said Robert Habek, Minister of Economy and Climate, during a press conference, adding that although some positive developments have been recorded, such as increasing demand for credits, “Germany has stuck to stagnation”.

Berlin’s significantly lower prediction for the development is fully aligned with the recent estimate of the International Monetary Fund in its forecasts announced earlier this month, and slightly lower than the German Central Bank estimate in December for 20%.

But it is more optimistic than the Association of the Union of Industries, which predicted Tuesday that the German economy will shrink marginally by 0.1% this yearremaining in recession for the third consecutive year, as it fell 0.2% in 2024 and 0.3% in 2023.