Ifo lowers forecast for German economy - Weak industrial demand and tariff risk among main factors
The Munich-based Ifo Institute for Economic Research has lowered its economic growth forecast for Germany in its latest published report.
The institute now expects Germany's Gross Domestic Product to grow by just 0.2 percent this year, a drop of 0.2 percentage points from its previous forecast.
The report highlights weak industrial demand and increasing global competition as the main challenges for the German economy.
Domestic and international political uncertainties also pose significant risks to economic stability. In particular, concerns are growing over the protectionist and unpredictable economic policies of US President Donald Trump. If the US extends tariffs on European goods, Germany's export sector could face severe disruptions.
The head of the ifo Institute said in an interview that the instability caused by US policies is "poison" for the economy.
On the same day, German carmaker Audi announced an agreement with labor unions to cut about 7,500 jobs in Germany by 2029. The move is part of the company's strategy to cut costs and increase competitiveness.
At the same time, Audi confirmed plans to invest eight billion euros over the next five years in German factories to boost technological innovation and improve production lines.
Audi is not the only German carmaker facing job cuts. Volkswagen previously announced plans to lay off 35,000 employees in Germany, Porsche aims to cut 1,900 jobs and Mercedes-Benz is looking to reduce thousands of positions by 2027.
Poll
"NATO's strategic asset thanks to investments" - Prime Minister Rama and Minister Vengu, at the Kuçova air base
Prime Minister Edi Rama, together with the Minister of Defense, Pirro Vëngu, conducted an inspection at the Kuçova air base, which is becoming a strategic......
How convincing are Albanians of electoral promises? - SCAN survey: More than half say they are unachievable
In the run-up to the 2025 parliamentary elections, the main parties have presented their economic programs with various promises to improve the country's......
Electric cars, China develops new technology - Why are Chinese manufacturers building fast charging systems?
China's BYD has unveiled a megawatt charging system that it says can charge an electric car as quickly as filling up a gas car. The company said it will......
"Soft loan and sovereign guarantee for agriculture" - Rama: "The sky is the limit" for the development of agritourism in Albania
With two new lines of financing for agriculture, such as soft loans and sovereign guarantees, the country's Prime Minister, Edi Rama, emphasized in an......
EU aims for security deal with Britain - Brussels tries to "persuade" member states to negotiate with London
The European Commission is trying "intensively" to convince member states to give it a mandate to negotiate a security and defense partnership with the......
Fewer complaints about fines for violations at work - Labor Inspectorate: In 2024, only 21% of them were complained about
During the past year, businesses have appealed fewer fines imposed by labor inspectors. According to the annual report of the State Inspectorate of Labor and......
Water utilities improve performance - From operating costs to water without revenue. Water supply increased by 1 hour per day
Water utilities have improved performance indicators related to water supply duration, non-revenue water, coverage of operation and maintenance costs,......
“More than 48 hours of work per week” - Report: Albanian youth work the longest in the region
Albanian youth are the ones who work longer hours compared to other countries in the region and Europe. According to a Eurofound report, in the Western......
