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7 April 2025 | Euro

Germany’s industrial production decline adds to concerns over economic downturn

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Germany’s industrial production decline adds to concerns over economic downturn

Germany’s industrial production contracted 1.3% in February, exceeding analysts’ expectations of a 1% drop. The fall was driven by a decline in construction activity, as well as a drop in food and energy production, Bloomberg reports, citing official statistics. 

The news agency notes that German manufacturers are facing weak global demand and suffering losses due to the cutoff of energy supplies from Russia. Besides, Donald Trump’s trade restrictions pose additional risks, threatening the export-oriented German economy.

The data provided by Destatis contradicts optimistic forecasts based on an increase in government spending on defense and infrastructure, Bloomberg notes. Despite the positive dynamics of Germany’s trade balance, with its surplus widening to 17.7 billion euros ($19.47 billion), the real economy continues to face difficulties.

Elizaveta Kuzmicheva MarketCheese

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