Macro Trends Germany Q1FY25 – Steady Strides in a Shifting Landscape

Highlights of the report

Germany’s economy showed tentative signs of stabilization in Q1’2025, following a prolonged period of stagnation.

Macro Trends Germany FY24 - sector report

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Energy and food price inflation softened significantly, contributing to the decline. However, core inflation (excluding energy and food) remains sticky at 3.0%, reflecting persistent service sector pressures.

The GDP grew marginally by 0.2% quarter-on-quarter, indicating slow but
positive momentum after a flat performance in 2024. While the full-year 2025 growth forecast remains modest at 0.3%, improvements in sentiment and policy support signal early recovery efforts taking hold.

 Unemployment remained steady at 5.9%, supported by strong labor market fundamentals, especially in high-demand sectors such as tech and defense.

Executive Summary
• Macro Economic Update
– Global
• Macro-Economic Performance
– Germany
• Equity Market Performance
– Global
– Germany
• Debt Market Indicators
– Germany

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Macro Trends Germany Q1FY25 – Steady Strides in a Shifting Landscape

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