OECD cuts growth outlook for German economy

By Maria Martinez

BERLIN, Sept 23 (Reuters) - The Organisation for Economic Cooperation and Development cut its economic outlook for Germany on Tuesday, though it upgraded its forecast for the euro zone economy for this year.

The OECD expects gross domestic product to expand marginally by 0.3% in 2025 and 1.1% in 2026, shaving 0.1 percentage points from its previous projections in both years.

Germany has struggled to regain momentum after two years of contraction, hit by weak global demand, high energy costs and a slide in industrial output.

Euro zone GDP growth is expected to be 1.2% in 2025, 0.2 percentage points more than previously forecast.

For next year, the OECD forecasts 1.0% growth, down from a previous projection of 1.2%.

Increased trade frictions and geopolitical uncertainty are somewhat offset by easier credit conditions, according to the OECD.