The period of weakness in the German economy is not yet overcome in 2025. Having fallen in the previous two years, Germany’s gross domestic product (GDP) grows only slightly by 0.3 % after price and calendar adjustment.
Inflation now only a little above 2 %
After four years in which inflation rates were much too high at times, Germany’s inflation is almost back to normal levels in 2025. As measured by the Harmonised Index of Consumer Prices (HICP), the average inflation rate for 2025 is 2.3 %.
Key interest rates stable since the summer
Having made four interest rate cuts in the first half of 2025, the Governing Council of the ECB leaves the key interest rates unchanged in the second half of the year. The Eurosystem’s deposit facility rate currently stands at 2 %.
Lower loss for the year
For 2025, the Bundesbank records a loss of €8.6 billion for the year. Financial burdens are significantly reduced in 2025, but remain substantial. Together with the accumulated losses of €19.2 billion brought forward from 2024, the accumulated loss for 2025 rises to €27.8 billion.
