German Economy Minister Katharina Reiche said that the “structural weakness“ of the German economy remains and advocated reforms to get it out of the crisis.
“The renewed stagnation of GDP in the third quarter of 2025 shows the continued structural weakness of the German economy“, Reiche said, according to the DPA news agency. “While the recent improvement in confidence indicators points to some economic recovery at the end of the year, risks remain high, especially due to the ongoing uncertainty in trade policy and the looming supply problems for semiconductors and rare earth elements“, she added.
In this regard, the minister advocated structural reforms to put the economy on a growth path. “Now we need to reform the social security systems, significantly reduce bureaucracy, increase the resilience of supply chains, expand the labor supply and ensure the sustainability of public budgets“, she said. According to Reiche, the German government will continue to work consistently in this direction.
Only minimal economic growth of 0.2% is expected in 2025.“This makes it even more important to strengthen the foundations of competitiveness and growth now through targeted structural reforms“, she concluded.
Earlier, the Federal Statistical Office of Germany reported that Germany's GDP in the third quarter, adjusted for price, seasonal and calendar adjustments, remained unchanged compared to the second quarter of 2025. On October 14, the agency reported that September inflation reached 2.4% year-on-year, the highest level in 2025.
Germany has been experiencing a prolonged economic crisis in recent years. Initially caused by the COVID-19 pandemic, it has worsened after the disruption of Russian gas supplies. Earlier, members of the government's expert council on economic development revised downward their forecast for Germany's economic growth in 2025. The country is facing a third consecutive year of recession.