Three -year series without economic growth will close Germanyaccording to a report of Bundesbankwhich sees stagnation after two years of recession.
The inability of the economy to return to positive pace is mainly attributed to the US customs policy and the uncertainty about their future stance. “New US duties and uncertainty about future US policy are initially limiting economic growth. This is affecting the German industry at a time when it was starting to stabilize after the long period of weakness, “Bundesbank Commander Joachim Nugel said earlier today, and warned exporters that they need to prepare for difficult times.
The German Central Bank is expecting a significant reduction in exports for this year due to US trade policy with a slight improvement in 2026. as an aggravating factor for the competitiveness of the German export industry, it is also estimated that the euro has been significantly released against the dollar.
According to Mr Nagel, the recovery of the German economy will be delayed until the planned billions of billions of money reached the announced investment in defense and infrastructure. For 2026, GDP increases by 0.7% and for 2027 by 1.2%.
However, the news is positive from the inflation front, which slows down faster. Bundesbank reports 2.2% in the current year and provides for a rate of 1.5% for 2026.