The German government has confirmed that the country's economy is facing serious problems. Economic growth has stopped, and gross domestic product (GDP) in 2025, according to experts, will remain in place.
UNN reports with reference to Financial Times.
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Germany has revised its gross domestic product growth forecast downwards.
The German economy is facing serious problems again
The German government has confirmed the stagnation of gross domestic product (GDP) in 2025 after two years of recession.
The German government's assessment published on Thursday is comparable to the previous GDP growth forecast of 0.3% in 2025.
In other words, no increase in produced wealth is expected this year, and the main reason for this forecast is the impact of US President Donald Trump's trade wars on Germany's export-dependent manufacturing sector.
"US trade policy, threats and the introduction of tariffs directly affect the German economy, which is highly export-oriented," commented Economy and Climate Minister Robert Habeck on Thursday, April 24, during the presentation of the government's spring forecasts to the press.
New Trump duties, IMF forecast and Merz expectations
This month, Trump announced 20 percent "reciprocal" tariffs on the EU, but then imposed a 90-day pause, bringing the bloc's rate down to a universal 10 percent rate while the two sides negotiate a final level.
The German government's worsening forecast follows a similar move by the IMF, which this week also forecast zero growth for German GDP in 2025.
Director of the Ifo Research Institute Clemens Fuest confirmed that the German economy is preparing for turbulence
But there is hope for future action in the new leadership position of Christian Democratic Union leader Friedrich Merz.
The politician promises to revive the German economy by increasing debt spending on infrastructure and defense. Friedrich Merz will be elected Chancellor of Germany next month.
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