Predicted Slow Economic Growth for North Rhine-Westphalia in 2025
North Rhine-Westphalia's Economy Walks a Tightrope, Says IHK NRW
The economy in North Rhine-Westphalia is teetering on the edge, according to IHK NRW President Ralf Stoffels. "Many companies are feeling the strain, and it's critical for some," Stoffels stated at a Düsseldorf gathering. The precarious situation is attributed to the absence of a downturn in the early summer, adding uncertainty to the competitive landscape and global economic climate.
The assessments follow the presentation of the second economic report by the RWI - Leibniz Institute for Economic Research. Economists expect a minor increase of 0.1 percent in North Rhine-Westphalia's economic output for the current year. While high energy prices and international competition remain pressing, the industrial sector appears to be finding its footing, the RWI reported. The initial forecast in February had predicted a more substantial 0.3 percent growth in NRW's GDP.
Potential Growth Up To 1.5 Percent by 2026
Looking ahead, the RWI anticipates stronger growth rates for North Rhine-Westphalia and the entirety of Germany. By 2026, the institute expects a total increase of 1.5 percent for the region. "The federal government's special fund may offer significant boosts to economic growth," the researchers commented.
Green Party's NRW Minister of Economy Mona Neubaur demanded the federal government to maintain competitive energy prices. "Expanding renewables is a step in the right direction, but a temporary bridge power price and a reliable power plant strategy are essential to prevent a growth slowdown," Neubaur elucidated.
The RWI releases three economic reports annually on behalf of the NRW Ministry of Economics. (dpa)
Insights Beyond NRW's Horizon
While specific projections for North Rhine-Westphalia are not available from the RWI, other economic institutes offer insights into broader trends. For Germany, most institutes predict a slight recovery in growth rates. The Leibniz-Institut für Wirtschaftsforschung Halle (IWH) forecasts a stagnant 2025 for Ostdeutschland (East Germany) and a growth rate of 1.1% in 2026, while the Gemeinschaftsdiagnose predicts a growth rate of 1.3% for Germany in 2026. You may find more detailed regional forecasts from the RWI's official publications or press releases.
The industrial sector in North Rhine-Westphalia, despite facing high energy prices and international competition, is reportedly finding its footing, according to the RWI. Business growth in the region may potentially reach up to 1.5 percent by 2026, with the federal government's special fund offering significant boosts to economic growth, as suggested by the RWI.
