German economy to grow 0.1 pct in 2025, dragged by U.S. tariffs
Summary
Germany's economic growth forecast for 2025 has been downgraded to 0.1% due to higher U.S. tariffs and declining exports, with a structural transformation ongoing and uncertain stimulus impact.
Key Points
- Germany's economy is expected to grow by only 0.1% in 2025, down 0.1 percentage points from earlier forecasts.
- The downgrade is due to a sharper drop in exports to the United States following tariff increases.
- Germany's exports overall are forecast to fall 0.2% in 2025, heavily affected by tariff-driven trade disputes.
- Economic policy measures in Germany have temporarily improved business sentiment but have not sustained potential growth uplift.
