In the six years from 2020, German GDP, after taking into account changes in market prices, decreased by EUR 940 billion. Calculated per employee, this means approximately 20,000. euro losses. As much as a quarter of this amount falls on 2025, which was marked by customs tensions with the administration of President Donald Trump, reports the dpa agency.
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Michael Groemling, an IW analyst, emphasizes that the current decade has brought unprecedented economic shocks that have forced huge adjustment costs. According to the analysis, the losses in recent years exceed the effects of both the stagnation of 2001–2004, estimated at EUR 360 billion, and the financial crisis of 2008–2009, which cost Germany EUR 525 billion.
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The German economy is still below pre-pandemic levels
IW experts note that despite the recovery after the pandemic, Germany's economic activity has not returned to the pre-2019 level for three years. After two years of recession, the German economy recorded a GDP growth of 0.3% at the end of 2025. This result was better than initial forecasts and allowed us to avoid a third year in a row without growth.
However, economists indicate that a more visible recovery will still have to wait. Forecasts assume that the full effects of investments in infrastructure and defense will be visible only in 2027.
