Germany expects economic stagnation this year and holds Trump responsible economy

The German government has reduced its forecast for economic growth to the current year, and a difficult year -old confrontation for the largest economy in Europe was suggested. The outgoing Minister of Economy Robert Habik said Thursday in Berlin, that this comes after Berlin expected in January that the gross domestic product would grow by 0.3% this year, but the outgoing left administration will grow its mandate.
You now think that the economy will be shrouded in this year.

Hibbek wanted to confront his country’s economy to stagnant to US President Donald Trump’s trade policy, which increases customs duties, reduces import from abroad and supported the local industry.

“The American commercial policy based on threats and the imposition of customs duties directly affects the German economy, which is adequately approved on export.”

The German government expected earlier growth of 0.3% this year after it recorded the largest economic power in Europe to shrink over the past two years.

The growth forecast for the year 2026 has also reduced 1% of 1.1%.

The United States, a major destination for German products from cars to chemicals, is the largest commercial partner for Germany and its share of German exports last year reached about 10%.

The United States is currently imposing 10% customs duties on the European Union exports to it, after it announced earlier a higher fee of 20% that entered its application later for a period of 90 days.

“The customs duties and turmoil in commercial policy affect the German economy more than other countries,” Habik said.

“We rely on open markets and working markets and a world based on globalization. These are the things that affected this country,” he said during a press conference in Berlin.

German GDP recorded 0.3% in 2023, at 0.2% in 2024, against the backdrop of high energy prices in the wake of the Russian war on Ukraine.

It also faces increasingly fierce competition in major sectors such as cars and mechanisms.

Habik talked about a “transformation” regarding the sectors that were usually pumped money for the German economy. He said, “Our major commercial partners, China and the United States, and our neighbor Russia are causing us problems.”

America is the most important partner

Figures indicate that the United States has become – for the first time in 2024 – the first trading partner of Germany since 2015, bypassing China.

• The volume of trade exchange between the two countries reached 252.8 billion euros (273 billion dollars).
• Of them 161 billion euros ($ 173.9 billion) German exports to the United States.