Forecast: NRW Economy Grows Only Slightly - North Rhine-Westphalia's Economic Growth Slows as Tariffs and Energy Prices Bite
North Rhine-Westphalia's economic outlook remains uncertain, with growth projections revised downwards. Philipp Breidenbach, economist at the RWI – Leibniz Institute for Economic Research, discusses the impact of Olympic Games and potential regional effects. Mona Neubaur, the Economics Minister, highlights government investments in infrastructure as a driving force for economic momentum.
The state's economic output growth forecast has been revised down to 0.1% for 2025, a significant drop from the initial 0.3% projection. This revision reflects the challenging economic climate, with North Rhine-Westphalia's growth expected to lag behind the national average of 0.2% in 2025. The state's economy is projected to grow by only 0.1% this year, while Germany as a whole is expected to grow by 1.1% in 2026.
Exports to the USA, a significant market for North Rhine-Westphalian companies, are being negatively impacted by American tariff policies. Rising global protectionism and high energy prices further contribute to the state's sluggish economic performance. The North Rhine-Westphalia Chamber of Commerce and Industry (IHK NRW) expresses concern that the state's economy may not have reached its lowest point yet.
Despite the current challenges, the RWI predicts an economic recovery for North Rhine-Westphalia in 2026, with a projected growth rate of 1.1%. The state's government is investing in schools, roads, and digital infrastructure to drive positive economic momentum. As the economic outlook remains uncertain, businesses and policymakers alike must adapt and innovate to navigate the complex global economic landscape.
