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Germany’s economy will stagnate this year as tariffs cast a shadow, advisers say

  • Germany's government economic advisers said on May 21, 2025, that Europe's largest economy will stagnate this year in Germany.
  • This outlook follows persistent economic weakness over five years and new risks from U.S. President Donald Trump's tariffs and trade threats.
  • Germany dominated engineered product exports, but competition from China and falling exports to China, along with rising tariff uncertainties, challenged growth.
  • Monika Schnitzer, chairwoman, stated that Trump's tariffs are creating global economic instability and posing risks to growth, while commending a substantial infrastructure investment plan for its potential to boost Germany's growth prospects.
  • The council projects growth of 1% in 2026 supported by the fiscal package but expects a pronounced current phase of economic weakness in Germany.
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regionalmedianews.com broke the news in on Wednesday, May 21, 2025.
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