{"id":47834,"date":"2025-04-24T23:14:09","date_gmt":"2025-04-24T23:14:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/47834\/"},"modified":"2025-04-24T23:14:09","modified_gmt":"2025-04-24T23:14:09","slug":"germany-economy-panic-as-donald-trumps-tariffs-crash-forecast-growth-world-news","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/47834\/","title":{"rendered":"Germany economy panic as Donald Trump’s tariffs crash forecast growth | World | News"},"content":{"rendered":"

Germany<\/a> has cut its economic growth forecast for this year to zero, blaming Donald Trump<\/a>\u2019s \u201cunpredictable\u201d tariffs policy. It\u2019s another blow for Europe\u2019s biggest economy after its growth forecast was slashed to 0.3% earlier this year after a previous estimation of 1.1%.<\/p>\n

Germany<\/a>\u2019s outgoing Economy Minister Robert Habeck made it clear what he believes is the cause of the downgrade. “There is above all one reason for this, namely Donald Trump’<\/a>s trade policy and the effects of the trade policy on Germany<\/a>,\u201d he said. The US President imposed 20% “reciprocal” tariffs on the European Union<\/a> earlier this month before announcing a 90-day pause – however, the EU<\/a> is continuing to face the baseline 10% tariff as talks between Washington and the bloc continue.<\/p>\n

\u201cThe German economy is once again facing major challenges due to the unpredictable trade policy of the United States<\/a>,\u201d Mr Habeck said.<\/p>\n

\u201cIt is therefore in our strong interest that the EU<\/a> and the US<\/a> find a solution to the tariff dispute.\u201d<\/p>\n

It comes after a report published by the International Monetary Fund (IMF) on Tuesday said Germany<\/a> expected to see economic growth of 0.0% in 2025 and 0.9% in 2026 – a decrease of 0.3 and 0.2 percentage points respectively.<\/p>\n

The IMF cut its global economic growth forecasts due to the impact of tariffs, expecting the US<\/a> to be the hardest hit among advanced economies.<\/p>\n

The UK<\/a>\u2019s growth forecast was also reduced to 1.1%, down from 1.6%.<\/p>\n

Germany<\/a> has an export-oriented economy and is the third-largest exporter in the world after China<\/a> and the US<\/a>.<\/p>\n

It was the only economy in the G7 that did not grow for the last two years and is now on track for a historic third year without growth.<\/p>\n

Head of the Ifo research institute Clemens Fuest warned: \u201cThe German economy is preparing for turbulence.\u201d<\/p>\n

Germany<\/a>\u2019s new chancellor-in-waiting Friedrich Merz said he plans to modernise the country\u2019s economy.<\/p>\n

\u201cOur goal is clear: Germany should become economically stronger, safer, fairer and more modern,\u201d he said in a video shared on social media by the Christian Democratic Union party.<\/p>\n

“We are committed to investing in industry, providing tax relief for small and medium-sized enterprises, and ensuring a reliable energy supply.<\/p>\n

\u201cAnd we are making our country safer both internally and externally.”<\/p>\n

Last month, German lawmakers voted to allow a huge increase in defence spending by loosening strict debt rules. The move is expected to release billions of euros for Berlin\u2019s defence budget.<\/p>\n","protected":false},"excerpt":{"rendered":"Germany has cut its economic growth forecast for this year to zero, blaming Donald Trump\u2019s \u201cunpredictable\u201d tariffs policy.…\n","protected":false},"author":2,"featured_media":47835,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,32,1700,299,1824,23122,16,15,26102],"class_list":{"0":"post-47834","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-donald-trump","10":"tag-economy","11":"tag-europe","12":"tag-germany","13":"tag-susanna-reid","14":"tag-uk","15":"tag-united-kingdom","16":"tag-world-section"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114395484232220861","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/47834","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=47834"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/47834\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/47835"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=47834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=47834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=47834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}