Germany downgrades 2025 growth forecast to zero

Germany has revised its growth forecast for 2025 to zero, down from a previous prediction of 0.3 percent, largely due to the impact of US President Donald Trump’s trade wars on its export-driven manufacturing sector. The country is experiencing its longest economic slump since World War II, with GDP contracting by 0.2 percent last year and 0.3 percent in 2023. Incoming Chancellor Friedrich Merz plans to stimulate the economy through increased debt-funded spending and tax incentives, but immediate challenges from Trump’s tariffs loom over the export-heavy economy.

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