The German government has lowered its economic growth forecast for 2025 from 1.1% to 0.3%. The country's outgoing economy minister, Robert Habeck, noted that uncertainty is being exacerbated by geopolitical risks associated with the return of Donald Trump - in particular the possible introduction of tariffs on goods from Europe.
Germany will hold snap elections on February 23 due to the collapse of the ruling coalition in November. "In addition to short-term difficulties, the German economy is facing deeper structural problems," the minister said, citing a lack of investment and excessive bureaucracy as examples that are hindering business development.