Germany's growth forecast drops to 0.2% for 2025

Germany's economic growth forecast has been cut to 0.2% for 2025, down from 0.4% predicted in January, according to the Ifo Institute. This adjustment reflects ongoing global trade tensions and uncertainty. The downgrade comes despite a proposed €1 trillion fiscal stimulus package aimed at boosting infrastructure and defense spending. The plan marks a significant shift from Germany's previous commitment to balanced budgets. Concerns remain about Germany's economy, which faces high energy prices and reduced demand from China. The U.S. has now become Germany's top trading partner, following a decline in trade with China.