Germany sees 2025 export decline due to growing trade tensions, government report says

German exports are expected to decline by 0.3% in 2025 due to weakening competitiveness as well as growing geopolitical and trade tensions, according to the government's annual economic report, seen by Reuters on Wednesday.

Imports are set to increase this year by 1.9%, the report says.

European governments and companies are on alert for possible new tariffs under the new administration of U.S. President Donald Trump.

The German government slashed its growth forecast for 2025 to 0.3% from 1.1%, according to the report's annual projections, confirming little sign of recovery from two years of contraction.

Handelsblatt first reported on the GDP forecasts last week.