Germany's Economic Outlook Darkens

The German government has revised its economic forecast for 2025, now expecting stagnation. This marks a historic moment as it would be the first time the German economy fails to grow for three consecutive years. Initially, a modest growth rate of 0.3% was projected for the year.

2026 Growth Projections Adjusted

Looking ahead to 2026, the government has slightly adjusted its GDP growth forecast to around 1%, a minor decrease of 0.1 percentage points from previous estimates.

Trade Policies Cast a Long Shadow

The revised forecasts are largely attributed to the unpredictable trade policies of United States President Donald Trump, including the imposition of tariffs. These developments have led German companies to delay investments, citing heightened uncertainty in the global trade environment.