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Germany's economy shrank in Q2 2025, but a robust draft budget signals optimism for recovery.
Germany's economy shrank by 0.1% in the second quarter of 2025, reversing the 0.3% growth in the first quarter.
The decline is attributed to reduced investments, though private and government consumption rose.
Despite the downturn, analysts remain optimistic about the recovery, citing positive signs in industrial production and business sentiment.
Additionally, Germany's cabinet approved a draft 2026 budget, which includes significant investments in healthcare, infrastructure, and defense, totaling €126.7 billion, with borrowing set to triple to help finance recovery from the pandemic.
The budget now awaits parliamentary approval.
La economía de Alemania se contrajo en el segundo trimestre de 2025, pero un robusto borrador de presupuesto indica optimismo para la recuperación.