Prognostication: Stunted economic growth anticipated in North Rhine-Westphalia in the year 2025
North Rhine-Westphalia's economic landscape is a rollercoaster between cautious hope and lingering fear, as per the assessment of the IHK NRW. "Many businesses are grappling with a tense, even critical situation," Ralf Stoffels, president of the Chamber of Industry and Commerce North Rhine-Westphalia (IHK NRW), shared in Düsseldorf. Although a significant economic downturn was averted in early summer, the competitive landscape and global economic climate remain uncertain.
This analysis stemmed from the second economic report by the RWI - Leibniz Institute for Economic Research, which predicts a marginal 0.1% growth in NRW's economic output this year. "High energy prices and international competition continue to challenge the industry, but it's showing signs of stability," the RWI stated. Initially, in February, the researchers had forecasted a growth of 0.3% in NRW's GDP.
Looking forward, growth prospects seem brighter. The RWI predicts a 1.5% increase for North Rhine-Westphalia and Germany as a whole by 2026. "The special fund of the federal government is likely to provide significant stimulus, helping to boost economic performance," the researchers noted. North Rhine-Westphalia's Minister of Economics, Mona Neubaur (Greens), underlined the urgency for competitive energy prices at the federal level. "Transition energy prices and a reliable power plant strategy are essential for avoiding economic slowdown during the transition to renewable energy," the minister emphasized.
The RWI prepares three economic reports annually on behalf of the NRW Ministry of Economics. (dpa)
On a broader scale, various German economic institutes, including the Sachverständigenrat and the Leibniz-Institut für Wirtschaftsforschung Halle (IWH), anticipate modest economic growth in Germany, with a slight recovery expected. The overall German growth forecast for 2026 is around 1.3%, although regional growth projections may vary based on local factors and broader national trends. It's best to consult directly with the RWI or their publications for detailed forecasts specific to North Rhine-Westphalia.
"In the midst of North Rhine-Westphalia's economic turbulence, many businesses are finding finance difficult due to high energy prices and intense international competition."
"As the region grapples with uncertain economic conditions, the RWI predicts that the federal government's special fund could provide a stimulus, potentially boosting the business sector in 2026 and beyond."
