Berlin - Saba:
The German Statistics Agency confirmed today, Tuesday, that the country's economy contracted in the last quarter of 2024, which highlights the size of the challenge facing the next German government in transforming its economic fortunes, according to the American newspaper "Wall Street Journal".
The "Destatis" agency said that the largest economy in Europe (Germany) shrank by 0.2% in the three months to the end of December 2024, which matches previous estimates published in January.
The country's economy shrank for the second year in a row in 2024, also by 0.2%.
Last month, the current coalition government forecast economic growth of just 0.3% in 2025, lower than previously forecast. More problems are likely to come from the tariffs threatened by US President Donald Trump, which could disproportionately hurt Germany’s export-oriented economy in the European Union.
A few days ago, German Chancellor Olaf Scholz told Bloomberg that “the European Union is strong enough to withstand any US threats to impose tariffs,” expressing his hope that “a negotiated agreement with the United States will be reached that will avoid a trade war.”
Trump signed executive orders imposing 25% tariffs on all steel and aluminum imports “without exceptions,” which was considered “a new phase in the trade war that he has been waging since the beginning of his term.”
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