Germany faces an economic contraction of 0.2% this year, triggered by trade disputes and high costs, prolonging the recession

<p>The IW study shows that Germany's GDP will fall by 0.2% this year, the third consecutive year of recession, influenced by US tariffs and global uncertainties. Companies are facing high operating costs and the labor market is deteriorating, with the number of unemployed likely to reach three million. The new government has an opportunity to revitalize the economy with a special infrastructure fund, as Germany suffers from weak global demand and declining competitiveness.