German Economy Contracts: Q2 2025 Sees Slight Dip Amid Trade Tensions
Jul 30, 2025
Germany
Economics
Germany
Economics
Germany's economy shrank by 0.1% in Q2 2025, aligning with forecasts. Trade tensions and U.S. tariffs are key concerns for the European economy.
German Economy Contracts Slightly in Q2 2025
Preliminary data indicates that the German economy experienced a 0.1% contraction in the second quarter of 2025. This figure is consistent with analysts' predictions.
Impact of Trade Tensions
The economic slowdown is partly attributed to concerns surrounding international trade policies, specifically the impact of U.S. tariffs.
Uncertainty persisted throughout the quarter due to ongoing negotiations and fluctuating tariff rates.
Eurozone Outlook
A preliminary GDP reading for the Eurozone is anticipated later today, offering further insight into the broader economic landscape.
The European Union recently agreed to a trade framework with the U.S.
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