Germany's economy is projected to stagnate in 2025 after two years of recession. The government announced the revised forecast on Thursday, April 24, 2025.
The German government has lowered its growth projections amidst trade war concerns initiated by Donald Trump. Economy Minister Robert Habeck cited the trade policies of the United States as a direct impact on Germany's export-oriented economy.
The growth projection for 2026 was also reduced from 1.1% to 1%. The United States' decisions, as Germany's main trading partner, could cost Germany between 0.25 and 0.5 percentage points of growth in 2025.