Par Euronews avec AP
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Good news, the German economy, weakened, returned to modest growth last year, after two years of decline in production, according to official figures.
The increase in gross domestic product of 0.2% in 2025 was driven by stronger household consumption and public spending, while exports fell under the impact of more restrictive US trade policy under the presidency of Donald Trump, the German Federal Statistical Office said on Thursday.
This follows contractions of 0.5% in 2024 and 0.9% in 2023.
« German exports have faced strong headwinds from higher U.S. tariffs, an appreciating euro and increased competition from China “, said the President of the Federal Statistical Office, Ruth Brand, in a statement accompanying the publication.
Expectations have risen that Germany will finally record stronger growth this year, with Chancellor Friedrich Merz’s government implementing plans to increase infrastructure spending on bridges and rail lines to make up for years of underinvestment.
At the same time, defense spending is increasing due to a perceived higher level of threat. coming from Russia after its invasion of Ukraine.
Covid-19, but not only that
Germany, like many of its European neighbors, has gone through a long period of stagnation. after the Covid-19 pandemic.
Rising energy costs following the war in Ukraine and the growing competition from China in key sectors of German industry, such as automobiles and industrial machinery, have also slowed down an economy strongly oriented towards exports.
Then Donald Trump imposed tariffs higher import taxes on goods coming from the European Union.
Slow growth has also highlighted long-term structural problems, such as excessive bureaucracy and a lack of skilled labor.
Strengthening the euro has also made exports less price competitive.
Unemployment on the rise
In 2025, the number of job seekers increased, with an annual average of around 2.948 million unemployed people, an increase of more than 160,000 compared to 2024, the highest level in a dozen years.
The unemployment rate is established around 6.3%a sign of a more fragile labor market compared to previous years.
The slowdown in economic activity, particularly in industry, is putting pressure on employment figures.
And in 2026?
A group of economists forecasts gross domestic product (GDP) growth of 0.9% in 2026.
They emphasize, however, that this projection remains fragile and could be compromised if the increase in public spending, supposed to revive the economy, is not implemented as quickly as planned by the government led by Friedrich Merz.
