Germany’s economy is finally moving again, posting a 0.2% expansion in 2025. The Bundesbank expects a slow, steady recovery from a multi-year recession that has tested the country's industrial backbone. After months of stagnation, the modest uptick signals a tentative return to growth for Europe’s largest economy.

Higher energy costs, weak global demand, and tight monetary policy had pushed Germany into a prolonged slump. Manufacturing and exports, the traditional engines of growth, were hit hard. The 0.2% figure suggests the worst may be over, but a rapid rebound seems unlikely given persistent headwinds in the global market.

Looking ahead, the Bundesbank is forecasting continued, albeit gradual, improvement. Policymakers will be hoping consumer spending picks up to help sustain the recovery. Watch for upcoming data on industrial orders and inflation to gauge if this fragile growth can truly take hold across the wider Eurozone.