ECB’s Nagel: German Economy Might Register a ‘Slight Pickup’ in 2025

18 June 2025

ECB’s Nagel: German Economy Might Register a ‘Slight Pickup’ in 2025
Joachim Nagel, president of the Deutsche Bundesbank, at the ECB International Women’s Day 2025 in Frankfurt on March 7, 2025. Photo by Adian Petty/ECB under CC BY-NC-ND 2.0.

By Marta Vilar – MILAN (Econostream) – European Central Bank Governing Council member Joachim Nagel said on Wednesday that the German economy could pick up slightly this year after a period of stagnation.

In a panel discussion at the Young Factor International Conference in Milan, Nagel, who heads the Deutsche Bundesbank, said that growth rates in Germany had been ‘pretty weak’, to the point of ‘stagnation’.

However, Nagel pointed to what he described as ‘positive sentiment’.

‘Using the new fiscal space is important to really trigger economic growth’, he said.

High uncertainty made assessing the current environment a difficult task, according to Nagel, who said that this assessment would depend on geopolitical uncertainties.

‘I wouldn't say Germany is a growth engine now, but it's good to have a better Germany compared to the past years, because we all know we are a large economy’, he said.

 

Related articles:

·      ECB’s Nagel: Should Remain ‘Cautious’ And ‘Flexible’, Sustained Undershoot Unlikely

·      ECB’s Nagel: We Can Now Take Time to Ponder Next Steps

·      ECB’s Nagel: Inflation Target ‘Finally Within Reach’