30.07.2025 08:23

Germany's economy experienced a minor contraction of 0.1% in the second quarter of 2025, according to preliminary data released by Destatis, the federal statistical office. This slight decrease mirrored analysts' predictions and represented a significant deceleration from the first quarter's revised 0.3% growth.

The sluggish performance came amidst considerable economic uncertainty fueled by ongoing trade negotiations with the United States. Initially implemented in April, reciprocal US tariffs, a key concern for European nations, saw temporary reductions but remained a significant source of volatility throughout the quarter. Specific sectors, notably the automotive industry and producers of steel and aluminum, faced increased tariffs.

A recently reached trade framework between the European Union and the United States brought some clarity, though at the cost of 15% tariffs on several EU goods. While certain products will be exempt, automotive tariffs have been lowered to a base level.

Further developments are anticipated with the impending release of the preliminary eurozone GDP figures for the second quarter. Economists, based on a Reuters poll, predict stagnation in overall growth for the Eurozone, a considerable drop from the 0.6% expansion witnessed during the first three months of 2025. This is a developing situation, and further updates are expected. The information was sourced from internet resources.