Germany's government has slashed its 2025 growth forecast for the country’s economy, Europe’s biggest, to just 0.3% after it shrank for two consecutive years.

The German government slashed its gross domestic product expectations Wednesday, saying it was now forecasting just 0.3% growth in 2025.

Berlin brought down its 2025 economic growth forecast from 1.1% to 0.3%. A government report cited the collapse of the government as the main reason.

The uncertainty about US trade policy in the wake of Donald Trump's presidency is partly to blame, economy minister Robert Habeck said on Wednesday. View on euronews

Germany’s government announced on Wednesday that it has revised its economic growth forecast for 2025 down to just 0.3%, citing serious concerns over the country’s economic outlook. Robert Habeck, the country’s economy and climate minister,