Overview

• Germany's federal government has revised its 2025 GDP forecast to zero percent, down from earlier projections of 0.3% in January and 1.1% last year.
• This marks the third consecutive year of economic contraction, an unprecedented streak in Germany's postwar history.
• German officials attribute the stagnation primarily to U.S. trade tariffs, which have reduced GDP growth by an estimated 0.25 to 0.5 percentage points.
• A dozen U.S. states have filed lawsuits challenging the Trump administration's tariff policies, adding legal uncertainty to the trade dispute.
• Germany's coalition government has approved a €500 billion infrastructure fund to stimulate growth, though specific reform plans remain undetermined.