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

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

Germany on Wednesday lowered its 2025 growth forecast to 0.3%, down from 1.1%, as the country's stagnant economy continues to struggle. Economy Minister Robert Habeck announced the new gross domestic product (GDP) estimate in a presentation of the government's annual economic report in Berlin.

The eurozone economy stagnated in the fourth quarter as political instability weighed heavily on the region’s two biggest countries, offsetting better performance elsewhere.

Europe’s economy stagnated late last year as its former growth engine, Germany, finished a second straight year of shrinking output.

Germany is to present a revised economic forecast for 2025 on Wednesday, with gross domestic product (GDP) expected to grow by a meagre 0.3%. Economy Minister Robert Habeck is due to announce the new figure - a significant drop from last autumn's estimate of 1.

Eurozone growth slowed to a halt in the fourth quarter last year, dragged by contractions in major powers Germany and France which were held back by economic headwinds and political instability. At one end of the eurozone spectrum Spain saw its economy expand by 3.

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