Despite economic headwinds, Germany’s DAX Index is projected to deliver earnings per share growth exceeding 10% in 2025, outperforming its European peers. This marks a double-digit rise compared to the 7.1% expected for the Stoxx Europe 600 and the 8.8% anticipated for France’s CAC 40, according to Bloomberg Intelligence.
Key contributors to this growth include major DAX companies like Siemens AG, SAP SE, Adidas AG, and Porsche AG. However, much of the outlook hinges on a recovery in Germany’s struggling automotive industry and cyclical sectors, with risks including China exposure and potential U.S. tariffs under Donald Trump’s presidency.
Germany’s political landscape adds uncertainty, with snap elections in February potentially reshaping government leadership. Analysts suggest fiscal expansion and easing borrowing limits could help revive Germany’s economy, which barely grew last year.
European equities face broader challenges, with economic growth in the Eurozone expected to lag behind the U.S., though some analysts see potential for a rebound once geopolitical and tariff risks stabilize.