EconomyLens.com
No Result
View All Result
Saturday, June 14, 2025
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
EconomyLens.com
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
No Result
View All Result
EconomyLens.com
No Result
View All Result
Home Economy

Germany faces two more years of recession if US trade war escalates: central bank

David Peterson by David Peterson
June 8, 2025
in Economy
Reading Time: 5 mins read
A A
0
30
SHARES
374
VIEWS
Share on FacebookShare on Twitter

Volkswagen cars waiting last month to be put aboard a ship for export near the company's factory in Emden, northwestern Germany. ©AFP

Frankfurt (Germany) (AFP) – Germany could face two more years of recession if a trade war with the United States escalates sharply, the central bank said Friday, a bleak warning for Europe’s struggling top economy. If US President Donald Trump’s tariffs were implemented in full from July and the EU retaliated, then German output would decline 0.5 percent this year and 0.2 percent in 2026, the Bundesbank forecast. This would be due to a “marked decline in exports and significant uncertainty weighing on investment,” it said. There would be a return to growth in 2027, with a rebound of one percent, it said.

Related

As NATO ups defence spending, can Europe produce the weapons?

Betraying the revolution: Cuban students reject dollarization

As NATO ups defence spending, can Europe produce the weapons?

Trump moves to block California electric cars program

Niger-Benin border standoff deepens as trade collapse bites

The eurozone’s traditional growth engine has already contracted for the past two years due to a manufacturing slump and surging energy prices after Russia invaded Ukraine, but hopes had been high for a modest recovery from this year. When Trump unveiled his “Liberation Day” tariffs in early April, he threatened to hit the European Union with a 20-percent levy over its hefty surplus in goods traded with the United States. He then paused those higher rates until July to allow for talks to try to reach a deal. More recently, he said he would slap the EU with a 50-percent tariff rate as negotiations stalled — but has also delayed that measure. The bloc still faces a “baseline” 10-percent tariff rate on all its exports to the United States, as well as higher levies on some specific sectors.

– Risk to German exports – Trump’s tariff blitz stands to hit export power Germany hard, as the United States was Germany’s top trading partner in 2024, receiving huge quantities of its cars, pharmaceuticals, and machinery. Germany’s federal employment agency predicted that, in the event that 25-percent tariffs were imposed, it would cost the country about 90,000 jobs in a year, the Sueddeutsche Zeitung daily reported. “The erratic trade policy of the United States is putting pressure on the German labour market,” agency chief Andrea Nahles told the newspaper. “The problem is this lack of predictability, which is causing us massive damage. It is preventing companies from investing, hiring, and training people.”

As well as a worst-case scenario, the Bundesbank also released “baseline” growth projections. This envisages US trade policy having a more moderate impact on Germany as new Chancellor Friedrich Merz’s planned spending surge on infrastructure and defence helps support the economy. Under these forecasts, the economy would stagnate this year before expanding 0.7 percent in 2026 and then 1.2 percent in 2027. The German government and many economic institutes have already slashed their growth forecasts for this year to zero, citing the uncertainty triggered by Trump’s trade war.

© 2024 AFP

Tags: GermanytariffsTrade War
Share12Tweet8Share2Pin3Send
Previous Post

Amazon agrees to tackle fake reviews in UK: regulator

Next Post

Stocks steady, dollar up before US jobs data

David Peterson

David Peterson

Related Posts

Economy

March quake to drive 2.5% drop in Myanmar GDP, says World Bank

June 12, 2025
Economy

UK economy shrinks in April as US tariffs kick in

June 12, 2025
Economy

Niger-Benin border standoff deepens as trade collapse bites

June 12, 2025
Economy

Rice prices Japan’s hot political issue, on and off the farm

June 12, 2025
Economy

US inflation edges up but Trump tariff hit limited for now

June 11, 2025
Economy

Latest GM investments in US in line with slowing EV demand: exec

June 11, 2025
Next Post

Stocks steady, dollar up before US jobs data

Russia cuts interest rates from two-decade high as economy slows

Eurozone GDP growth revised up to 0.6% in first quarter

US job market cools but resilient for now despite Trump tariffs

0 0 votes
Article Rating
Subscribe
Notify of
guest
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
  • Trending
  • Comments
  • Latest

New York ruling deals Trump business a major blow

September 30, 2024

Elon Musk’s X fights Australian watchdog over church stabbing posts

April 21, 2024

Women journalists bear the brunt of cyberbullying

April 22, 2024

France probes TotalEnergies over 2021 Mozambique attack

May 6, 2024

Ghanaian finance ministry warns against fallout from anti-LGBTQ law

74

New York ruling deals Trump business a major blow

71

Shady bleaching jabs fuel health fears, scams in W. Africa

71

Stock markets waver, oil prices edge up

65

Google turns internet queries into conversations

June 13, 2025

Spain economy minister urges fair, balanced EU-US tariff deal

June 13, 2025

Startups show off ocean-preserving tech at Paris trade fair

June 13, 2025

War, trade and Air India crash cast cloud over Paris Air Show

June 13, 2025
EconomyLens Logo

We bring the world economy to you. Get the latest news and insights on the global economy, from trade and finance to technology and innovation.

Pages

  • Home
  • About Us
  • Privacy Policy
  • Contact Us

Categories

  • Business
  • Economy
  • Markets
  • Tech
  • Editorials

Network

  • Coolinarco.com
  • CasualSelf.com
  • Fit.CasualSelf.com
  • Sport.CasualSelf.com
  • SportBeep.com
  • MachinaSphere.com
  • MagnifyPost.com
  • TodayAiNews.com
  • VideosArena.com
© 2025 EconomyLens.com - Top economic news from around the world.
No Result
View All Result
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials

© 2024 EconomyLens.com - Top economic news from around the world.