Germany's troubled economy shows modest growth after two years of shrinkage

Germany's troubled economy returned to modest growth last year after two years of falling output, official figures showed, as hopes rise that government spending on bridges, rail lines and defense may help end years of stagnation. The expansion in gross domestic product of 0.2% for 2025 was fueled by stronger consumer and government spending while exports sagged under the weight of more restrictive U.S. trade policy under President Donald Trump, the German Federal Statistical Office said on Thursday. “Germany’s export business faced strong headwinds owing to higher U.S. tariffs, the appreciation of the euro and increased competition from China,” statistical office head Ruth Brand said in a statement accompanying the statistical release.