The German government scaled back its prediction for 2025 to zero economic growth, citing the turbulence caused by U.S. tariffs, as well as stubborn bureaucracy and high energy prices. Da New York Times
Germany’s economy will not grow for the third year in a row, the government said on Thursday, scaling back a previous prediction as President Trump’s tariffs bite into Europe’s largest economy, leaving it stagnant.
In January, the German government had predicted 0.3 percent economic growth, but Mr. Trump’s tariffs of 25 percent on imported automobiles, steel and aluminum threaten to hit Germany’s export-oriented economy hard, as could the turbulence in the markets caused by the yo-yo nature of how the tariffs have been imposed.
“The German economy, which is already suffering from weak foreign demand and reduced competitiveness, is particularly affected by the U.S. trade policy,” Robert Habeck, Germany’s economy minister, told reporters in Berlin on Thursday.
Germany is the only member of the Group of 7 nations whose economy has failed to grow in the past two years.
