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Germany downgrades 2025 growth forecast to zero

Impact from Trump trade wars set to prolong the longest economic slump in country’s postwar history

Germany has revised down its growth forecast to zero for this year, with its export-dependent manufacturing sector set to take a hit from US President Donald Trump’s trade wars.

Thursday’s estimate by the German government compared with its previous prediction of a 0.3 per cent rise in GDP for 2025.

The country’s economy, Europe’s largest, is suffering the most protracted slump in its postwar history. German GDP shrank by 0.2 per cent last year and by 0.3 per cent in 2023.

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