Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Two German flags fly in front of and top of the Reichstag building at sunset.
Photo by Hannes P Albert/Picture Alliance through Getty Images
German economy increased by 0.2% in the first quarter compared to the previous three -month period, preliminary data showed on Wednesday, as tariff tension in the US threatens the country’s growth.
The figure published by German Federal Statistics is adjusted to the price, calendar and seasonal variations.
Reading the gross domestic product corresponded to the estimates of the economists interviewed by Reuters. The German gross domestic contract is 0.2% in fourth quarter.
The statistics service attributed a quarterly increase to the fact that “the final costs for consumption and capital formation were higher than in the previous quarter.”
The largest economy in Europe has long been sluggish, and its GDP switching between growth and reduction in each quarter over 2023 and 2024. The country still avoided the technical recession, which is determined by two consecutive quarters.
The key sectors of the economy, such as Autos, suffer from stronger competition from China. Other industries, including home construction and infrastructure, are also experiencing attempts that have been associated with higher costs, muted investments and bureaucratic obstacles.
Special tariff policy of US President Donald Trump has caused uncertainty about export reliant Germany, which considers the US its most important trading partner.
Within the framework of the European Union, Germany faces 20% of goods exported to the United States, although these levies have temporarily declined to 10% to allow time to negotiate. US duties have become, aluminum and cars also affect the country.
Last week the German government cut your economic forecast To predict the stagnation in 2025, Economy Minister Robert Habek said Trump’s trade policy and their influence on the country were a major factor in revision.
One bright place may appear on the horizon. Germany earlier this year made changes To its long -standing borrowed financial rule, allowing higher protection costs and set up a 500 billion euro fund ($ 570 billion), dedicated to infrastructure and climate investments.
This step has widely considered As a positive shift for the German economy, although much depends on how changes are made.
While the German economy was sluggish, the local inflation level closed the 2% target of the European Central Bank. The consumer price index in the country, agreed for comparability throughout the euro area, amounted to 2.3% in March, which in February compared to 2.6%.
Previous inflation figures in April must come out later on Wednesday, and economists surveyed Reuters, who estimate 2.1% reading.
This is amazing news, please check the updates.
