German economy remains stuck, 1.0% growth in 2026 expected, DIHK says

The German Chamber of Commerce (DIHK) announced on January 15, 2025, that the German economy remains stuck with only 1.0% growth expected in 2026, reflecting persistent structural challenges facing Europe's largest economy. This modest projection comes amid ongoing concerns about industrial competitiveness, energy transition costs, and global economic headwinds that have constrained Germany's economic performance in recent years. The DIHK report highlights how traditional industrial powerhouses like Germany are struggling to maintain growth rates amid rapid technological changes and shifting global trade dynamics. Economists note that this growth projection represents a slight improvement from 2025 but falls significantly below pre-pandemic trends, indicating a prolonged period of economic stagnation. The report emphasizes that without substantial reforms in energy policy, digital infrastructure, and industrial adaptation, Germany risks further erosion of its competitive position in global markets.