BERLIN, Dec. 11 (Xinhua) -- Germany is facing a stronger-than-expected drag from U.S. tariff hikes, several leading research institutes said Thursday. They now project the economy to grow by only 0.1 percent in 2025, 0.1 percentage points lower than their autumn forecast.
According to the ifo's Economic Forecast Winter 2025 and the Kiel Institute's Winter Forecast, the downgrade reflects a sharper drop in exports to the United States following tariff increases, as well as the limited impact of Berlin's fiscal measures, including a multi-billion-euro infrastructure fund unveiled earlier this year.
