The country’s Finance Minister, Jörg Kukies, stated in an interview with CNBC that it is crucial for Germany to enter a period of economic growth, adding that structural deficiencies need to be addressed.

“We have just received another downward revision of growth forecasts from the IMF,” he said at the World Economic Forum in Davos. The International Monetary Fund (IMF) now projects Germany’s GDP growth at 0.3% in 2025 and 1.1% in 2026, according to the January update of its World Economic Outlook. This marks a sharp decline from the October forecast of 0.8% growth in 2025.

Germany’s annual gross domestic product contracted in both 2023 and 2024. Quarterly GDP figures were also modest, although the economy has so far avoided a technical recession.

Kukies also remarked that domestic German companies are “under stress” but continue to perform “very well” on the global market, seemingly referencing the rise of the DAX 40 stock index (Germany 40 mini on FXOpen). Indeed, yesterday the index surpassed the 21,300-point level for the first time in history.

Technical analysis of the DAX 40 stock index chart (Germany 40 mini on FXOpen) indicates that the price is forming two ascending channels. While rising within the steeper purple channel, the price has exceeded the upper boundary of the blue channel.

However, given that the price has not yet reached the upper boundary of the purple channel (as indicated by the arrow), it is reasonable to suggest that bullish momentum may be waning. If so, a possible scenario could involve a correction with a bearish breakout of the lower purple line, leading the price back into the blue channel. It is also possible that there will be one more attempt to set a new record, accompanied by the formation of bearish divergence on the RSI indicator.

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