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Germany's economy faces a bleak 2026 outlook due to weak growth, high energy costs, and slow reforms despite policy promises.
German Chancellor Friedrich Merz has warned of a "very critical" economic outlook for Germany in 2026, citing weak growth, high energy costs, declining exports—especially to the U.S.—and slow structural reforms.
Despite pledges of public investment, tax cuts, and legal reforms, business leaders say progress remains too slow.
The economy contracted in 2023 and 2024, with 2025 growth projected near 0.1%.
Inflation eased to 1.8% in December 2025.
Meanwhile, Brandenburg’s coalition collapsed over internal disputes, prompting a minority government, and Berlin faced power outages after a sabotage incident.
Merz reiterated support for Ukraine, emphasizing frozen Russian assets as a key aid source.
La economía de Alemania enfrenta una perspectiva sombría para 2026 debido al débil crecimiento, los altos costos de la energía y las lentas reformas a pesar de las promesas políticas.