Germany's government has slashed its 2025 growth forecast for the country’s economy, Europe’s biggest, to just 0.3% after it shrank for two consecutive years.

The German government on Wednesday cut its growth projections for 2025 amid domestic political instability and the looming threat of higher US tariffs under President Donald Trump. Output is now expected to increase by only 0.

Germany on Wednesday lowered its 2025 growth forecast to 0.3%, down from 1.1%, as the country's stagnant economy continues to struggle. Economy Minister Robert Habeck announced the new gross domestic product (GDP) estimate in a presentation of the government's annual economic report in Berlin.