Nagel: Germany might enter recession in 2025

(Source: baha news)
EPA-EFE/SASCHA STEINBACH

Member of the European Central Bank (ECB) Governing Council and Bundesbank President Joachim Nagel stated on Wednesday that Germany entering a recession in 2025 cannot be excluded, but insisted that its economy "will do much better" in the coming years.

Speaking to Bloomberg, Nagel praised the fiscal stimulus the government adopted this year, saying it sends "an important message" that Germany "is doing its homework." He expressed his certainty that the package will not contribute to a rise in the Eurozone's inflation, stressing that the ECB's key interest rate will go to its target of 2% in 2025.

Moreover, Nagel commented on United States President Donald Trump's tariff policy, saying that the Eurozone must reach a "better understanding" on how to respond to it. He also dismissed doubting the US Treasury and the dollar's status as safe havens as "not good."

Baha Breaking News (BBN) / JR