Germany's Economic Outlook Dims

The German government, in its final days, has released a sobering economic forecast for 2025, predicting a period of stagnation. This marks a historic first, as the nation's economy would not grow for three consecutive years, according to sources cited by Handelsblatt. A previous projection in January had anticipated a modest growth rate of 0.3%.

Revised Projections for 2026

Looking ahead to 2026, the government has adjusted its growth expectations downward, now forecasting a GDP increase of approximately 1%, a slight decrease of 0.1 percentage points from earlier estimates.

The Impact of Global Trade Policies

The revision in Germany's economic outlook is largely attributed to the unpredictable trade policies and tariffs imposed by United States President Donald Trump. These measures have created a climate of uncertainty, leading German companies to delay investment decisions, further exacerbating the economic slowdown.