The economy “likely stagnated” and the overall trend continues to be “weak,” according to the Bundesbank’s monthly report.
The central bank cautioned that the implementation of 30% import tariffs, recently declared by US President Donald Trump, would pose a “substantial risk of an economic decline.”
The Bundesbank stated in its report that in the near term, Germany’s export sector will encounter further challenges due to US tariff policy.
The German economy grew by 0.4% in the first quarter of 2025 relative to the prior three months. The rate of GDP growth was the greatest since the third quarter of 2022. Nonetheless, this increase is primarily a result of initiatives by companies and exporters to stay ahead of US tariffs.
source: dw.de
