Germany edges back into growth after two years of contraction
Europe’s largest economy returned to modest expansion in 2025, as stronger consumer and government spending offset weaker exports hit by higher US tariffs.
READ MORE : http://www.euronews.com/2026/01/15/germany-edges-back-into-growth-after-two-years-of-contraction
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00:01Germany's troubled economy returned to modest growth last year after two years of falling output.
00:07The expansion in gross domestic product of 0.2% for 2025 was fueled by stronger consumer and government spending to make up for years of underinvestment.
00:18On the other hand, exports sacked under the weight of more restrictive U.S. trade policy under President Donald Trump.
00:25Meanwhile, defense spending is rising due to a perceived higher level of threat from Russia after its invasion of Ukraine.
00:33Germany has endured a period of extended stagnation following the COVID-19 pandemic.
00:39Higher energy costs following the war in Ukraine and increasing competition from China in key German specialties such as cars and industrial machinery have held back an economy that is heavily focused on exports.
00:51A stronger euro has also made exports less competitive on price.
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