A stele with the inscription “Deutsche Bundesbank Eurosystem” stands in front of the Bundesbank headquarters. Arne Dedert\/dpa <\/p>\n
Germany’s struggling economy likely stagnated over the third quarter, the country’s central bank said on Thursday.<\/p>\n
The Bundesbank’s monthly report for October found that gross domestic product (GDP) probably remained steady “at best” in the summer quarter, adjusted for price changes.<\/p>\n<\/p>\n
The forecast is a downgrade from September’s report, which suggested that the third quarter would likely see minor growth.<\/p>\n
The reasons for the pessimism are the ongoing crisis in the automotive sector, weakness in industry and US President Donald Trump’s trade policies.<\/p>\n
“Industry continues to suffer not only from structural problems, but also from the increased US tariffs,” said the Bundesbank. “Production, real turnover and real exports of goods have recently declined.”<\/p>\n
Europe’s largest economy has been mired in an extended slump following two consecutive years of recession.<\/p>\n
While Chancellor Friedrich Merz has promised to turn around the economy since taking office in May, GDP dropped 0.3% in the second quarter, and the Bundesbank’s report suggests that the third quarter did not see a marked improvement.<\/p>\n
Industrial orders have declined, the central bank noted, while production declined in August after a strong July.<\/p>\n
While the recovery in the construction sector is still a long time coming, consumers are holding back on spending.<\/p>\n
The Bundesbank sees a glimmer of hope in economic data from the ifo Institute pointing to a somewhat more robust industrial economy at the end of the year.<\/p>\n
Forecasters expect the German economy to grow by only 0.1% to 0.2% this year, before rising beyond 1% growth in 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"A stele with the inscription “Deutsche Bundesbank Eurosystem” stands in front of the Bundesbank headquarters. Arne Dedert\/dpa Germany’s…\n","protected":false},"author":2,"featured_media":505324,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5310],"tags":[12810,165631,2000,299,1945,1824,165632,6202],"class_list":{"0":"post-505323","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-germany","8":"tag-central-bank","9":"tag-deutsche-bundesbank","10":"tag-eu","11":"tag-europe","12":"tag-friedrich-merz","13":"tag-germany","14":"tag-monthly-report","15":"tag-president-donald-trump"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115386357206304259","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/505323","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=505323"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/505323\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/505324"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=505323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=505323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=505323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}