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

Berlin brought down its 2025 economic growth forecast from 1.1% to 0.3%. A government report cited the collapse of the government as the main reason.

BERLIN (Reuters) -German exports are expected to decline by 0.3% in 2025 due to weakening competitiveness as well as growing geopolitical and trade tensions, according to the government's annual economic report,

Europe’s economy stagnated late last year as its former growth engine, Germany, finished a second straight year of shrinking output.