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Germany: Economy Faces Stagnation as 2025 Outlook Remains Grim

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Berlin, Germany - January 08, 2025 The Reichstag, Chancellery and Brandenburg Gate symbolize Germany’s unity and resilience, yet today, on January 8, 2025, they frame a nation grappling with economic stagnation. Against the backdrop of these iconic landmarks, economists are sounding the alarm: Germany’s once-thriving economy risks falling further behind. Economists cite an over-reliance on cheap Russian energy, which delayed Germany’s green transition, and unfavorable conditions for business investment, including high corporate taxes and bureaucratic hurdles - meanwhile, an aging population and a growing part-time workforce pressure a strained social welfare system. As voters prepare for upcoming elections, Germany finds itself at a crossroads. The nation’s iconic institutions, standing firm in the heart of Berlin, echo the urgency for transformative action to secure its economic future. Without bold reforms, economists warn, Germany risks seeing its prosperity erode further.

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