Germany was the only G7 economy that failed to grow for the last two years, and is on track for a third year without growth in 2025.
The German government cut its economic growth forecast to zero citing the impact of Donald Trump’s trade policies .
“There is above all one reason for this, namely Donald Trump’s trade policy and the effects of the trade policy on Germany,” outgoing Economy Minister Robert Habeck said.
He said there was little hope of relief for Europe’s largest economy following two years of recession in 2023 and 2024.
The German economy contracted by 0.3% in 2023 and by 0.2% in 2024.