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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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11 Articles

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Center

The mood of companies in Germany has continued to improve.

·Germany
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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.

·Munich, Germany
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Center

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.

·Hamburg, Germany
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  • 50% of the sources are Center
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EU-Schwerbehinderung broke the news in on Tuesday, June 24, 2025.
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