German government expects another year without growth

Germany faces a third consecutive year without economic growth, as shown in the German government’s spring forecast for 2025, according to Reuters. Economic stagnation is expected for this year, heavily influenced by the economic uncertainty following the U.S.’s increased tariffs under President Donald Trump. Germany’s outgoing economy minister, Robert Habeck, states that the U.S.’s unpredictable trade policy presents significant challenges due to Germany’s involvement in global supply chains and openness to foreign trade. This new American protectionism could have direct and indirect impacts on Germany’s economic growth. If the German economy stagnates or declines for three consecutive years, it will be unprecedented in the country’s history. Unemployment is expected to rise to 6.3% in 2025. In comparison, Denmark’s unemployment was 2.9% in March.