Germany's Economic Tumble: Tariffs Cast a Shadow on 2025
- Germany's Ifo Business Climate Index increased to 88.4 points in June, reflecting optimism among companies due to interest rate cuts and a fiscal package, according to the Ifo Institute for Economic Research.
- Germany's economy grew by 0.4 percent in early 2025 as companies increased goods shipments to the U.S. before tariffs took effect, reflecting higher spending and investment.
- Germany's manufacturing sector faces challenges, with predictions that the economy may shrink by 0.3 percent in 2025, according to Germany's main industry group.
- Unemployment is expected to remain at 6.3 percent in 2025, with inflation around 2.1 percent, as businesses express hope despite potential tariff impacts.
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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.
German Business Mood Brightens, but U.S. Tariffs Cast a Shadow
Business leaders in Germany feel more hopeful about the future, according to new data from the Ifo Institute. The main business confidence index rose to 88.4 in June, up from 87.5 in May. This means more companies expect things to get better in the coming months. Germany’s economy grew slightly at the start of 2025. […]
The mood of companies in Germany has continued to improve.
For the sixth time in a row, the Ifo Business Climate Index is growing. German economy is slowly gaining confidence, says Ifo CEO Clemens Fuest.
In June, the ifo business climate improved again. It rose for the sixth month in a row to the highest level in over a year. Thus, an upswing is becoming more and more likely.
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