The German government slashed its gross domestic product expectations Wednesday, saying it was now forecasting just 0.3% growth in 2025.

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

Germany on Wednesday lowered its 2025 growth forecast to 0.3%, down from 1.1%, as the country's stagnant economy continues to struggle. Economy Minister Robert Habeck announced the new gross domestic product (GDP) estimate in a presentation of the government's annual economic report in Berlin.

Eurozone growth slowed to a halt in the fourth quarter last year, dragged by contractions in major powers Germany and France which were held back by economic headwinds and political instability. At one end of the eurozone spectrum Spain saw its economy expand by 3.

US real gross domestic product increased at an annualized rate of 2.3% in the fourth quarter of this past year, less than the forecast of 2.7%. That economic growth was far below expectations and shows a much cooler economy than the second and third quarter of the year.