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.
Survivors’ advocates urged cardinals on Wednesday to elect a pope who will put the Church’s clergy-abuse crisis front and center, saying three consecutive pontiffs have failed to do so.
Ukraine expects to sign a revamped minerals partnership with the United States within 24 hours, Prime Minister Denys Shmyhal said Wednesday, adding that future U.S. aid could count toward the deal’s funding.
China has lifted sanctions on five current and former Members of the European Parliament, signaling a move to ease tensions with the European Union and revive stalled trade negotiations.
The Senate Commerce Committee on Wednesday advanced President Donald Trump’s picks of private astronaut-entrepreneur Jared Isaacman to run NASA and aide Olivia Trusty to fill an FCC seat, moves that would hand Republicans a 3-2 majority on the telecom regulator.
On the eve of crucial local elections across England, Prime Minister Keir Starmer came under intense scrutiny during Wednesday’s Prime Minister’s Questions, facing criticism on border control, grooming gangs, and UK-US trade talks.
Survivors’ advocates urged cardinals on Wednesday to elect a pope who will put the Church’s clergy-abuse crisis front and center, saying three consecutive pontiffs have failed to do so.
Ukraine expects to sign a revamped minerals partnership with the United States within 24 hours, Prime Minister Denys Shmyhal said Wednesday, adding that future U.S. aid could count toward the deal’s funding.
China has lifted sanctions on five current and former Members of the European Parliament, signaling a move to ease tensions with the European Union and revive stalled trade negotiations.
The Senate Commerce Committee on Wednesday advanced President Donald Trump’s picks of private astronaut-entrepreneur Jared Isaacman to run NASA and aide Olivia Trusty to fill an FCC seat, moves that would hand Republicans a 3-2 majority on the telecom regulator.
On the eve of crucial local elections across England, Prime Minister Keir Starmer came under intense scrutiny during Wednesday’s Prime Minister’s Questions, facing criticism on border control, grooming gangs, and UK-US trade talks.
Russia launched a major missile and drone assault on Kyiv overnight on April 24, killing at least twelve people and injuring 90, including children and a pregnant woman, according to Mayor Vitali Klitschko.
In an expansive interview marking his first 100 days back in office, President Donald Trump sketched out an agenda that touches everything from punitive tariffs and China policy to cease-fire hopes in Ukraine and an overhaul of domestic programmes. Below are the highlights.
A deadly explosion at Iran’s Bandar Abbas port has left at least 40 dead, with more than 1,200 people injured, state media reported on Sunday, halting operations at one of the country’s most vital trade hubs.
North Korea has launched a new 5,000-tonne destroyer as part of Kim Jong Un’s plans to expand the country’s naval power far beyond its coastal waters.
A massive explosion at Shahid Rajaee Port in southern Iran on Saturday killed at least four people and injured nearly 600 others, officials said, prompting an urgent government investigation.
Survivors’ advocates urged cardinals on Wednesday to elect a pope who will put the Church’s clergy-abuse crisis front and center, saying three consecutive pontiffs have failed to do so.
Ukraine expects to sign a revamped minerals partnership with the United States within 24 hours, Prime Minister Denys Shmyhal said Wednesday, adding that future U.S. aid could count toward the deal’s funding.
China has lifted sanctions on five current and former Members of the European Parliament, signaling a move to ease tensions with the European Union and revive stalled trade negotiations.
The Senate Commerce Committee on Wednesday advanced President Donald Trump’s picks of private astronaut-entrepreneur Jared Isaacman to run NASA and aide Olivia Trusty to fill an FCC seat, moves that would hand Republicans a 3-2 majority on the telecom regulator.
On the eve of crucial local elections across England, Prime Minister Keir Starmer came under intense scrutiny during Wednesday’s Prime Minister’s Questions, facing criticism on border control, grooming gangs, and UK-US trade talks.
Survivors’ advocates urged cardinals on Wednesday to elect a pope who will put the Church’s clergy-abuse crisis front and center, saying three consecutive pontiffs have failed to do so.
Ukraine expects to sign a revamped minerals partnership with the United States within 24 hours, Prime Minister Denys Shmyhal said Wednesday, adding that future U.S. aid could count toward the deal’s funding.
China has lifted sanctions on five current and former Members of the European Parliament, signaling a move to ease tensions with the European Union and revive stalled trade negotiations.
The Senate Commerce Committee on Wednesday advanced President Donald Trump’s picks of private astronaut-entrepreneur Jared Isaacman to run NASA and aide Olivia Trusty to fill an FCC seat, moves that would hand Republicans a 3-2 majority on the telecom regulator.
On the eve of crucial local elections across England, Prime Minister Keir Starmer came under intense scrutiny during Wednesday’s Prime Minister’s Questions, facing criticism on border control, grooming gangs, and UK-US trade talks.
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