The International Monetary Fund released its 2025 Article IV consultation material for Germany, assessing that the economy has experienced three years of negative or very low growth as a result of major external shocks compounded by weak underlying productivity growth. The report highlights an energy-price shock following Russia’s invasion of Ukraine, rapid monetary tightening to contain subsequent inflation, and heightened trade-related headwinds. It also points to stalled structural reforms at both the European Union and German level as a factor contributing to subdued productivity growth.
International Monetary Fund 2026-02-12
International Monetary Fund publishes Germany 2025 Article IV assessment linking three years of weak growth to external shocks and stalled reforms
The International Monetary Fund's 2025 Article IV consultation for Germany identifies three years of negative or low growth due to external shocks, weak productivity, energy-price shocks from Russia's invasion of Ukraine, rapid monetary tightening, and stalled structural reforms at the EU and German levels.