Latest news with #GermanEconomy
Free Malaysia Today
27-05-2025
- Business
- Free Malaysia Today
German economy expected to contract by 0.3% this year, says DIHK
The US was Germany's biggest trading partner in 2024, with two-way goods trade totalling US$288.02 billion. (EPA Images pic) BERLIN : The German economy is expected to contract by 0.3% this year, shrinking for a third consecutive year, the German Chamber of Commerce and Industry (DIHK) said today, forecasting the longest period of weakness in Germany's post-war history. 'The risk of recession persists,' the DIHK said, but following a promising first quarter, its forecast was more optimistic than the previously forecast 0.5% contraction published in February. Economic growth in the first quarter was significantly stronger than expected due to export and industry frontloading ahead of US tariffs. Germany had been expected to be badly affected by tariffs due to its export-oriented economy. The US was Germany's biggest trading partner in 2024, with two-way goods trade totalling €253 billion (US$288.02 billion). The DIHK forecasts German exports to decline by 2.5% in 2025, also contracting for a third consecutive year. A DIHK survey, conducted among 23,000 companies from all sectors and regions, showed that 29% of the companies expect exports to fall over the next 12 months, while only 19% expect exports to rise.
Reuters
27-05-2025
- Business
- Reuters
German economy expected to contract by 0.3% this year, DIHK says
BERLIN, May 27 (Reuters) - The German economy is expected to contract by 0.3% this year, shrinking for a third consecutive year, the German Chamber of Commerce and Industry (DIHK) said on Tuesday, forecasting the longest period of weakness in Germany's post-war history. The risk of recession persists, the DIHK said, but following a promising first quarter, its forecast was more optimistic than the previously forecast 0.5% contraction published in February. Economic growth in the first quarter was significantly stronger than expected due to export and industry frontloading ahead of U.S. tariffs. Germany had been expected to be badly affected by tariffs due to its export-oriented economy. The U.S. was Germany's biggest trading partner in 2024 with two-way goods trade totalling 253 billion euros ($288.02 billion). The DIHK forecasts German exports to decline by 2.5% in 2025, also contracting for a third consecutive year. A DIHK survey, conducted among 23,000 companies from all sectors and regions, showed that 29% of the companies expect exports to fall over the next 12 months, while only 19% expect exports to rise. ($1 = 0.8784 euros)
Russia Today
25-05-2025
- Business
- Russia Today
Trump's tariff threat could cost Germany €200 billion
The German economy could lose up to €200 billion by the end of 2028 if tariffs of 50% remain in place until the end of US President Donald Trump's term in office, according to a German Economic Institute (IW) report published on Friday. The US is Germany's main trading partner, with total goods exchange valued at €253 billion ($287 billion) in 2024, according to official data. At €17.7 billion, Germany's export surplus in the trade of goods with the US was the highest among all of its trading partners in the first quarter of 2025. The Federal Statistical Office also reported that exports to the US exceeded imports by almost 75%. From 2025 to 2028, German economic output would on average be 1.1% lower than without the increased tariffs, the IW report said. If the EU retaliates with similar countermeasures, the total damage could increase to €250 billion by 2028. In a post on Truth Social on Friday, Trump claimed that the EU was originally formed 'for the primary purpose of taking advantage of the US on trade.' He went on to say that the bloc is 'very difficult to deal with.' He accused the EU of imposing harmful economic policies, taxes, and regulations, as well as launching 'unfair and unjustified lawsuits against American companies,' which he said have contributed to a 'totally unacceptable' trade deficit. According to the US Trade Representative's office, the deficit currently stands at around $240 billion per year. Trump went on to announce that, due to stalled negotiations, he is recommending a 50% tariff on all goods from the EU, effective June 1, 2025. Treasury Secretary Scott Bessent echoed the criticism later that day on Fox News, saying he believes the president views the EU's proposals as falling short of the standards set by other major trading partners. 'I'm not going to negotiate on TV, but I hope this serves as a wake-up call for the EU,' he said. The EU is committed to securing a trade agreement with the US based on mutual respect rather than threats, EU Trade Commissioner Maros Sefcovic wrote on X on Friday. He added that 'EU-US trade is unmatched and must be guided by mutual respect,' but that the bloc is ready to defend its interests.
Yahoo
23-05-2025
- Business
- Yahoo
‘Surprisingly good March' helps German GDP exceed expectations
The German economy grew by a surprising pace of 0.4% in the first quarter, according to revised data from the German statistics office. That was double the growth initially estimated. The Federal Statistical Office had reported at the end of last month that the economy expanded by 0.2% in the January-March period compared with the previous quarter. The head of the office, Ruth Brandt, said that "the surprisingly good economic development seen in March" led to the revision. The last time Germany saw stronger growth was in the third quarter of 2022, when gross domestic product expanded by 0.6%. Germany has struggled to generate significant growth for years, and the economy shrank in each of the last two years. In last year's fourth quarter, it contracted by 0.2%. Related Spain's economy grows at slightly slower pace at the start of the year Eurozone grows 0.3% at the start of the year, industrial output soars In its first forecast since new Chancellor Friedrich Merz's government took office earlier this month, the government's panel of independent economic advisers predicted on Wednesday that GDP will stagnate this year and grow by 1% next year. It pointed to headwinds from US President Donald Trump's tariffs and trade threats, but said a huge infrastructure investment package put together by Merz's coalition offers opportunities for improvement next year. Carsten Brzeski, global chief of macro at ING bank, said the improved first-quarter showing looks set to be "a positive one-off" at least in the short term, fuelled by businesses trying to get ahead of Trump's tariffs. "As a result of the announced tariffs and in anticipation of 'Liberation Day,' German industrial production and exports surged in March," Brzeski said in a research note. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Germany's economy grew by 0.4% in first quarter, figures show
The German economy grew by 0.4% in the first quarter thanks to stronger-than-expected exports and manufacturing, official data showed. That was double the growth initially estimated for Europe's biggest economy. The German Federal Statistical Office had reported at the end of last month that the economy expanded by 0.2% in the January to March period compared with the previous quarter. The head of the office, Ruth Brandt, said that 'the surprisingly good economic development seen in March' led to the revision. The last time Germany saw stronger growth was in the third quarter of 2022, when gross domestic product expanded by 0.6%. Germany has struggled to generate significant growth for years and the economy shrank in each of the last two years. In last year's fourth quarter, it contracted by 0.2%. In its first forecast since new Chancellor Friedrich Merz's government took office earlier this month, the government's panel of independent economic advisers predicted on Wednesday that GDP will stagnate this year and grow by 1% next year. It pointed to headwinds from US President Donald Trump's tariffs and trade threats, but said a huge infrastructure investment package put together by Mr Merz's coalition offers opportunities for an improvement next year. Carsten Brzeski, global chief of macro at ING bank, said the improved first-quarter showing looks set to be 'a positive one-off' at least in the short term, fuelled by businesses trying to get ahead of Mr Trump's tariffs. 'As a result of the announced tariffs and in anticipation of 'Liberation Day', German industrial production and exports surged in March,' Mr Brzeski said in a research note. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
