Germany's long-awaited economic recovery has been postponed once again, as the government cut its forecasts for this year amid trade tensions and growing domestic uncertainty over the upcoming election.

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 economy has shrunk for two years in a row, will stagnate in 2025, and hardly grow thereafter. Faced with deep-seated structural challenges, Europe’s powerhouse is in an economic existential crisis.

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