Germany’s economy stalls in Q3 as exports dip

Germany’s economy stagnated in the third quarter of 2025, with GDP showing no growth compared to the prior quarter. Export volumes fell, particularly to China and the U.S., while domestic investment also cooled. The decline comes amid persistent global trade tensions and weakening demand from key trading partners. The government said the weakness was temporary but acknowledged that structural headwinds—including high energy prices and labour shortages—remain. Analysts warn that without a rebound in exports or stronger domestic demand, the risk of a technical recession is elevated.