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    <title>Germany sees economy stagnating in 2025 as Trump&#039;s trade policy weighs on it</title>
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    <description>Projected 2025 economic stagnation is attributed primarily to international trade policy shocks, with recent tariff measures and trade threats identified as material risks to exports and overall performance. Export-dependent sectors face heightened competition and reduced demand, and political uncertainty and absence of a stable parliamentary majority constrain policy response. Parliamentary measures to mitigate the slowdown include relaxing strict debt-incurrence rules to permit higher defence spending and creating a large infrastructure investment fund to stimulate demand, contingent on parliamentary approval of a coalition agreement and the election of new leadership.</description>
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