BERLIN (Reuters) -The German government cut its economic forecast for this year and now foresees stagnation instead of 0.3% growth, the Handelsblatt newspaper reported on Tuesday, citing government sources.
For 2026, the government now foresees growth around 1%, down slightly from its January forecast of 1.1%, according to the newspaper.
The economy ministry declined to comment when asked about the forecasts and instead referred to a news conference on the new projections planned for Thursday.
Germany was the only G7 economy that failed to grow for the last two years, and the tariffs announced by U.S. President Donald Trump could put it on track for a third year without growth for the first time in history.
Uncertainty about how Europe’s largest economy will develop in light of the tariffs served as the groundwork for the new forecast, Handelsblatt cited the sources as saying.
Earlier this month, German economic institutes cut their growth forecast for this year to 0.1% from the 0.8% expected in September, taking into consideration initial U.S. tariffs on steel, aluminium and cars.
(Reporting by Christian Kraemer, writing by Miranda Murray, editing by Rachel More)
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