Bundesbank sees German economy shrinking by 0.2% this year

• German economy to shrink by 0.2% this year, grow by 0.2% in 2025 and 0.8% in 2026
• German economy to stagnate in winter half-year, to make a slow recovery over the course of 2025
• Trump tariffs could lower German economic growth by 1.3% to 1.4% through to 2027

They see trade protectionism as the biggest threat and rightfully so. That especially with the manufacturing sector in a prolonged recession with little to no signs of any optimistic recovery at this stage.

This article was written by Justin Low at www.forexlive.com.