The economy returned to expansion at the start of 2025, with previously hoped-for improvement likely dashed by tariff threats.

The German economy grew in the first quarter of the year thanks to consumption and investment, escaping a recession after contracting in the last quarter of last year, data showed on Wednesday. Gross domestic product rose in line with forecasts,

A Reuters poll had projected 0.2% growth from the previous quarter. Germany's economy, the largest in Europe, has long been sluggish, with its GDP flip-flopping between growth and contraction in each quarter throughout 2023 and 2024.