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

  • On 21 May 2025, Germany’s official economic advisory panel revised its outlook, projecting that the country’s economy will remain flat throughout 2025 due to ongoing global uncertainties and trade-related pressures.
  • This stagnation follows two years of shrinking GDP caused by industrial decline, fiscal constraints, rising Chinese competition, and risks from U.S. Tariffs.
  • Chancellor Friedrich Merz took office on 6 May 2025 and introduced a €500 billion investment plan to modernize infrastructure and stimulate growth over twelve years.
  • Monika Schnitzer, chairwoman of the panel, stated that Trump's tariffs are creating instability and posing risks to global economic growth, but she views the substantial investment plan proposed by Merz’s coalition as a chance to modernize Germany’s infrastructure and support stronger growth prospects.
  • The council expects 1% economic growth in 2026 but warns bureaucracy and structural barriers may delay recovery beyond that year.
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German growth upgraded on pre-tariff export surge

Germany's economy grew more than previously thought at the start of the year, as its exports surged before US President Donald Trump imposed sweeping tariffs, official data showed Friday.

·Cherokee County, United States
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regionalmedianews.com broke the news in on Wednesday, May 21, 2025.
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