Germany's Economic Outlook Dims

The German government anticipates a stagnant economy in 2025, marking an unprecedented three-year period without growth, as reported by Handelsblatt. This forecast revises earlier projections of a modest 0.3% growth rate.

Revised Growth Projections for 2026

Looking ahead to 2026, the government has slightly adjusted its GDP growth expectations to approximately 1%, a minor 0.1 percentage point decrease from previous estimates.

Global Trade Policies Impact German Economy

The adjustment in forecasts is largely due to the unpredictable trade policies and tariffs introduced by former U.S. President Donald Trump. These measures have led German businesses to delay investments amidst growing uncertainty.