From Growth Engine to Fragile Giant: Why Germany’s Economy Is Struggling

Date:

September 14, 2025

From Growth Engine to Fragile Giant: Why Germany’s Economy Is Struggling

German Chancellor Friedrich Merz speaks at the opening ceremony of IAA Mobility 2025 auto show in Munich, Germany, on Sept. 9, 2025. Kai Pfaffenbach/Reuters

News Analysis

Germany—the economic engine of Europe—enters the final stretch of 2025 in fragile condition. The world’s third-largest economy and the largest consumer market in the European Union, Germany last year generated roughly a quarter of the bloc’s GDP and stood as the United States’ top European trading partner.

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