Germany edged out of recession with 0.2 % growth in the first quarter, but the recovery looked shaky as unemployment climbed to its highest level since the pandemic and looming U.S. tariffs threatened to stall momentum.
Germany’s economy eked out 0.2 % growth in the first quarter, breaking a run of two straight contractions, but fresh labour-market data and looming U.S. tariffs highlight the fragility of the upturn.
Preliminary figures from the statistics office on Wednesday showed GDP rising exactly as forecast, buoyed by consumer spending and stronger investment after a 0.2 % slide at the end of 2024. “Any positive number is welcome, but the increase is far too small to end Germany’s long stagnation,” said ING economist Carsten Brzeski.
Headline inflation eased to 2.2 % in April, near expectations and adding weight to calls for further European Central Bank rate cuts after June’s trim to 2.25 %. Core inflation, however, quickened to 2.9 % from 2.6 %, underscoring sticky domestic price pressures.
Despite the GDP uptick, the number of jobless Germans rose again in April and the unemployment rate hit its highest level since the pandemic. Deutsche Bank economist Marc Schattenberg blamed tariff uncertainty for sapping hiring, especially in export-focused manufacturing.
Economists fear the rebound could fizzle as higher U.S. duties on EU goods dampen orders later this year. The Ifo Institute warns output may shrink again by summer; JP Morgan says continued weakness could mark a third consecutive year of contraction—unprecedented for a G7 economy.
Retail sales, which had looked brighter earlier in the quarter, slipped 0.2 % in March, while import prices climbed, hinting at renewed inflation pressures. Corporate sentiment is also under strain: Mercedes-Benz withdrew its earnings outlook and Volkswagen flagged profits at the lower end of its guidance.
A centre-right coalition due to take office next week faces an urgent task: reviving Europe’s largest economy by restoring business confidence and unlocking consumer spending.
Russian President Vladimir Putin has welcomed the recent agreement between the U.S. and Iran, saying it could help stabilise the Middle East and ease ...
The Caspian Sea has retreated by up to 35 kilometres along Kazakhstan's coastline since 2006, raising fresh concerns about the future of the world's l...
A U.S.-Iran memorandum of understanding aimed at ending war between the two countries has been signed electronically by President Donald Trump and Ira...
More than 100 Chinese companies approved for inclusion on the United States' most powerful trade restriction list have not yet been formally added, as...
Voters in Makerfield are casting their ballots in a closely watched by-election that could have implications far beyond Greater Manchester....
The Caspian Sea has retreated by up to 35 kilometres along Kazakhstan's coastline since 2006, raising fresh concerns about the future of the world's largest inland body of water and the communities, industries and ecosystems that depend on it.
Russian President Vladimir Putin has welcomed the recent agreement between the U.S. and Iran, saying it could help stabilise the Middle East and ease pressure on global energy and food markets.
More than 100 Chinese companies approved for inclusion on the United States' most powerful trade restriction list have not yet been formally added, as Washington has decided, for now, not to proceed, according to a report by Reuters.
Voters in Makerfield are casting their ballots in a closely watched by-election that could have implications far beyond Greater Manchester.
Donald Trump has said the U.S. will resume bombing Iran if Tehran doesn't "behave," at the sidelines of the G7 summit in France. Earlier, the U.S. President criticised Israel for its tactics against Hezbollah, saying it was unnecessary to bomb entire apartment buildings to tackle militants.
U.S. President Donald Trump said a preliminary agreement to end the war in the Gulf has been signed by the U.S. and Iran, though details have yet to be made public and both countries said a permanent truce is yet to be negotiated.
A cyber extortion group has claimed it stole more than a terabyte of data from Danish pharmaceutical giant Novo Nordisk after the company allegedly refused to pay a $25 million ransom.
A U.S.-Iran memorandum of understanding aimed at ending war between the two countries has been signed electronically by President Donald Trump and Iranian President Masoud Pezeshkian. Meanwhile, Israel has continued to carry out lethal strikes on southern Lebanon.
Pakistan's heavy reliance on imported energy was laid bare by the U.S.-Iran conflict, which disrupted regional supplies, drove up costs and exposed vulnerabilities in the country's energy security. However, a proposed peace agreement now offers hope for economic relief.
Russian President Vladimir Putin has welcomed the recent agreement between the U.S. and Iran, saying it could help stabilise the Middle East and ease pressure on global energy and food markets.
More than 100 Chinese companies approved for inclusion on the United States' most powerful trade restriction list have not yet been formally added, as Washington has decided, for now, not to proceed, according to a report by Reuters.
Voters in Makerfield are casting their ballots in a closely watched by-election that could have implications far beyond Greater Manchester.
A man carrying a Georgian passport has been arrested in Warsaw over the murder of an exiled Kremlin critic in Poland, authorities said. Police said the passport was issued to a 36-year-old Georgian citizen.
Thailand is reviving plans for one of its most ambitious infrastructure projects in decades, a proposed $30 billion “Land Bridge” that would connect the Gulf of Thailand with the Andaman Sea and offer an alternative trade route to the busy Strait of Malacca.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment