US tariffs weigh on the eurozone economy: growth is minimal

The German economy shrank by 0.3 percent in the spring, making it one of the laggards in the eurozone: only Finland performed worse, with a decline of 0.4 percent, while Croatia, the newest eurozone member, shone with growth of 1.2 percent.

The German Institute for Economic Research (DIW) predicts a noticeable revival of the German economy starting in 2026 thanks to government spending. After a mini-growth of 0.2 percent this year, GDP is expected to increase by 1.7 percent next year. And in 2027, it could rise by another 1.8 percent, according to the German Institute for Economic Research (DIW) in its economic forecast. Rising real wages, falling inflation, and the expected revival in the labor market for the coming year also have a positive impact.