Investing.com -- Germany’s economy is showing early signs of recovery from a prolonged slump, with gross domestic product expected to grow by 0.2% in 2025, according to projections released Friday by the German Institute for Economic Research (DIW Berlin). The forecast represents a slight downward adjustment from the 0.3% growth rate predicted in June. "The German economy is recovering, unusually, not through strong foreign trade but through domestic forces — above all through the expansion of the public sector," said DIW’s chief economist Geraldine Dany-Knedlik. The economic rebound is expected to be supported by a public financing package for infrastructure and climate projects, increased defense spending, and tax incentives designed to boost corporate investment. Looking ahead, the DIW projects GDP growth will strengthen to 1.7% in 2026 and reach 1.8% in 2027. During this period, domestic demand is expected to become the primary driver of growth, helping to offset declining contributions from net trade. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Which stocks should you consider in your very next trade? The best opportunities often hide in plain sight—buried among thousands of stocks you'd never have time to research individually. That's why smart investors use our Stock Screener with 50+ predefined screens and 160+ customizable filters to surface hidden gems instantly. For example, the Piotroski's Picks method averages 23% annual returns by focusing on financial strength, and you can get it as a standalone screen. Momentum Masters catches stocks gaining serious traction, while Blue-Chip Bargains finds undervalued giants. With screens for dividends, growth, value, and more, you'll discover opportunities others miss. Our current favorite screen is Under $10/share, which is great for discovering stocks trading under $10 with recent price momentum showing some very impressive returns!

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