Economic Outlook Dims for Germany

The German government, now in its final days, has revised its economic forecast for 2025, anticipating stagnation. This marks an unprecedented potential for three consecutive years without growth, a first in the nation's history. Earlier projections in January had suggested a modest growth of 0.3%.

Revised Forecasts for 2026

Looking ahead to 2026, officials have adjusted the GDP growth expectation downward to approximately 1%, a slight decrease of 0.1 percentage points from previous estimates.

Global Trade Policies Cast Shadow

The adjustment in forecasts is largely attributed to the unpredictable trade policies and tariffs introduced by U.S. President Donald Trump. These measures have sown uncertainty among German businesses, leading many to delay investment decisions amidst the volatile international trade environment.