The German economy is not only struggling with persistent economic headwinds, but also with structural problems, said Bundesbank President Joachim Nagel, presenting the Bundesbank’s new Forecast for Germany. The Bundesbank projects a slight decline of 0.2 % in real gross domestic product (GDP) in 2024 and only a slight rise in 2025. The labour market, too, is now responding noticeably to the protracted weakness of the economy. The inflation rate remains elevated in 2025, but is likely to return to 2 % in the years that follow.