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 Inflation moderated considerably, reflecting lower energy prices and tighter
monetary policy effects. Consumer Price Index (CPI) declined from 2.1% in May 2025 to 2.01% by June 2025, nearing the ECB’s target.

The industrial sector showed weak signs of stabilization. Industrial production rose modestly by 1.20% in May 2025, mainly driven by automotive (+4.9%), energy (+10.8%), and pharmaceutical (+10%) sectors.

Germany’s economy remained subdued in 1HFY25, with weak growth momentum despite easing inflation and a resilient labor market

Executive Summary
• Macro Economic Update
– Global
• Macro-Economic Performance
– Germany

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