Germany's GDP Growth Reaches 0.2% in 2025, Ending Two-Year Recession
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: seekingalpha
- Economic Recovery: Preliminary estimates indicate that Germany's GDP grew by 0.2% in 2025, a significant improvement from -0.5% in 2024, marking a gradual recovery after two years of recession and reflecting a restoration of market confidence.
- Consumption Expenditure Boost: The growth is primarily driven by increased household final consumption expenditure and government final consumption expenditure, indicating a rise in consumer confidence and government support that is expected to further stimulate economic activity.
- Calendar Effect Adjustment: After adjusting for calendar effects, Germany's economic performance improved by 0.3%, suggesting a more solid foundation for growth that may lay the groundwork for sustained economic expansion in the future.
- Statistical Office Insights: Ruth Brand, president of the Federal Statistical Office, noted that signs of economic recovery indicate that improvements in policy and market conditions are gradually becoming evident, leading to an optimistic outlook for the economy ahead.
Analyst Views on GF
Wall Street analysts forecast GF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GF is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 12.180
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About GF
The New Germany Fund, Inc. (the Fund) is a diversified, closed-end management investment company. The Fund seeks long-term capital appreciation primarily through investment in middle-market German equities. The focus of the Fund's investments lies within Germany. Under normal market conditions at least 80% of the Fund’s net assets are invested in equity or equity-linked securities. The Fund invests in range of sectors, which include aerospace and defense; auto components; automobiles; banks; building products; chemicals; electrical equipment; independent power and renewable electricity producers; insurance; Internet and direct marketing retail; information technology (IT) services, life sciences tools and services; metals and mining; real estate management and development; software; textiles, apparel and luxury goods; trading companies and distributors; diversified financial services; commercial services and supplies, and others. The Fund's investment advisor is DWS International GmbH.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
