BERLIN, Jan. 29 (Xinhua) -- The German government on Wednesday lowered its economic growth forecast for 2025, expecting Europe's largest economy to expand by 0.3 percent, instead of the previously projected 1.1 percent. The revision underscores the persistent challenges facing Germany's sluggish economy amid ongoing external and structural pressures.
The fall is partly attributed to the collapse of the country's ruling "traffic light coalition," including the Social Democratic Party (SPD), the Greens, and the Free Democratic Party (FDP), which has led to the suspension of growth stimulus initiatives, according to the annual economic forecast report released by the Federal Ministry for Economic Affairs and Climate Action.
