GERMANY’S GDP CONTRACTION WORSE THAN EXPECTED AFTER TARIFF BOOST
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22.08.2025


Euronews (22 August 2025)

By Eleanor Butler

 

The economy had seen a slight uptick at the start of this year as businesses sought to get ahead of tariffs, but the country has now slipped back into contraction territory.

The German economy shrank by 0.3% quarter-on-quarter from April to June, according to figures released by the Federal Statistical Office on Friday.

That’s worse than the initial estimate of -0.1% and comes after Germany saw a GDP boost at the start of the year, notably as companies ramped up business with the US to get ahead of tariffs imposed by President Trump.

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