Germany cuts growth forecast as recovery slower than hoped

Announcing the downgrade from its previous estimate of a 1.3 percent expansion made in October, the economy ministry insisted it was pushing ahead with structural reforms to help support long-term growth. Conservative Chancellor Friedrich Merz has launched a spending blitz on defence and infrastructure to revive the economy, which returned to weak growth in 2025 after two years of recession, but criticism has mounted that the campaign has got off to a slow start. The downgrade will be a blow to...