💨 Abstract

Germany's economy is expected to stagnate in 2025 due to U.S. tariffs and trade threats, according to a government panel. The forecast for 2026 is a 1% growth, revised down from 0.4% for 2025. New Chancellor Friedrich Merz plans to reduce bureaucracy and promote digitization. Trump's tariffs and Chinese competition pose significant risks to German exports, which remain strong but face growing uncertainty.

Courtesy: WTOP Staff