The German economy will stagnate this year. It’s good news

by Andrea
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The German economy will stagnate this year. It's good news

The German economy will stagnate this year. It's good news

Volkswagen factory in Dresden, Germany

The generality of analysts predict that, at best, the German economy is expected to stagnate, in 2025, after having registered a contraction for two years, and that the impact of the tariff war released by Donald Trump could weigh on an uninsent result.

The German economy should, At best, stagnate In 2025, after two years of contraction and to have in 2023.

During this period, with two successive falls of Gross Domestic Product (GDP), internal problems and an industrial crisis, Germany It is no longer the economic “engine” Outstanding Europe.

In February, however, data from industrial activity higher than expected brought to the country’s economy.

According to the main think tanks Europeans cited by, the impact of US customs rights resulting from the launched by Donald Trump could still influence a Non -one resultaccording to the predictions of the main reflection groups.

Germany has Europe’s largest economy and is the most populous 27 members of the European Union.

According to the latest update of an economic report quoted by ABC, economists expect a minimum growth of 0.1% this year – below 0.8% they predicted in September – and growth 1.3% in 2026.

However, economists point to the uncertainty around politics Trump Administration commercial.

US tariffs on Aluminum, steel and vehicle imports They should reduce German economic growth this year and next 0.1 percentage points each, according to the report.

The widespread tariffs announced last week by President Donald Trump and then can double this impact on German GDP, economists say.

But they add that “specific effects are difficult to quantifysince customs rates have never been so sharply increased in the current globalized economy of the world. ”

O, led by the new chancellor Friedrich Merzwhich should take office next month, after months of political derivation in the country, announced as the main objective revitalize the economy of the country.

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