Germany Cuts GDP Growth Forecast for 2025

(MENAFN) The German government has revised its gross domestic product (GDP) projection to a 0 percent growth for 2025, as reported by German media on Tuesday. Earlier, in January, the government had anticipated a modest 0.3 percent annual growth for the year.

If the German economy experiences stagnation this year, it would be the first instance in history that the country does not achieve growth for three consecutive years.

Looking ahead to 2026, the government expects growth to be "around one percent," based on sources quoted by the media.

In January, the federal government had forecast a 1.1 percent increase for that period.

The ongoing performance of the German economy over the next eight months is particularly challenging to predict due to the tariff policies of United States Leader Donald Trump, according to the sources.

The 10 percent tariff on all imports, along with specific duties on steel, aluminum, and automobiles, remains in effect, despite Trump's recent suspension of additional tariffs for the European Union.

The updated government forecast reflects the impact of these tariffs, as well as poorer-than-expected performance by German businesses.

These companies are now further delaying investments due to the uncertainty surrounding Trump's future decisions.

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