Bundesbank data points to German economic stagnation in Q2

According to the Bundesbank, Germany's economy likely showed no growth in the second quarter after a surprisingly strong expansion at the start of the year.

In the first quarter of 2025, the country's GDP grew by 0.4%. Reuters notes this was partly due to businesses and exporters rushing to get ahead of expected US tariffs.

Germany’s regulator warns that the 30% American duties on EU imports announced by President Donald Trump could trigger a major economic downturn.

However, S&P Global Market Intelligence reports that German companies are optimistic about the economy’s future growth. For the first time in two years, businesses plan to boost investments, thanks to government plans to increase defense and infrastructure spending.

However, the Bundesbank notes that these positive trends will likely take time to show up in Germany’s economic data.