Germany's Economic Tumble: Tariffs Cast a Shadow on 2025
The German economy is projected to contract by 0.3% in 2025 due to U.S. tariffs affecting exports, marking the third annual decline. While Germany remains enthusiastic about potential economic improvement, BDI highlights the necessity of government reforms and pledges support for bolstering national defense capabilities.
The German economy is anticipated to face a steeper contraction in 2025, attributed to U.S. tariffs impacting exports, according to the BDI industry association. A predicted 0.3% decline marks the third straight yearly downturn.
The U.S. retained its position as Germany's primary trading partner in 2024, with a bilateral trade volume reaching 253 billion euros. Despite the challenges, BDI President Peter Leibinger holds hope for an economic rebound in 2026, conditional on decisive governmental reforms.
Leibinger praised initial moves by the German government, such as tax and energy reliefs, and emphasized the need for continued reforms while expressing industry support for enhancing Germany's defense capabilities.
(With inputs from agencies.)
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