The German government is predicting the country’s economy, the largest in Europe, the US President Donald Trump’s tariff and trade threats will be stalled this year, considering the threat of trade
Berlin – The German government has predicted Thursday that the economy of Europe’s largest country in Europe will be stalled this year as US President Donald Trump’s tariff and business threat depends on its functioning after several months of political uncertainty.
Outgoing Economy Minister Robert Habek said the government had cut its 2025 outlook from the slightest growth of 0.3% predicted by the late January. For next year, it is somewhat less than 1.1% to predict three months ago, predicting 1% growth.
“One of the reasons is above this, such as Donald Trump’s trade policy and trade policy in Germany,” Habek told Berlin reporters. He mentioned that Germany was also not in the parliamentary majority to set the policy in early November and the new government was not yet implemented after the elections in February.
Germany has not seen significant economic growth in five years. The country affects the world trade on exports and industrial appliances and engineering products such as industrial equipment and luxury cars.
However, in addition to many other factors, Chinese companies have suffered from growing competition and every economy has been contracted in the last two years.
Trump’s tariff has added more risks to German export. For the first time after last year, the United States was part of Germany’s largest single business partner, with the decline of Asian power exports to China from the top.
The German Parliament plans to meet Fredreach Merz as the next leader of the country, if all parties of its proposed government approved an alliance agreement earlier this month.
Already last month, potential partners have imposed plans through Parliament to loosen strict rules on taking Debt and to enable higher defense expenditures to increase the economy to establish a huge infrastructure fund.
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