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German economy grows 0.2 pct in 2025, ending two years of contraction

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German economy grows 0.2 pct in 2025, ending two years of contraction

2026-01-16 23:11 Last Updated At:01-19 23:52

Germany's economy grew 0.2 percent in 2025, adjusted for inflation, according to preliminary data released Thursday by the Federal Statistical Office (Destatis), ending two consecutive years of recession.

"The German economy edged back into growth," Destatis President Ruth Brand said at a press conference in Berlin, attributing the modest expansion mainly to stronger household and government consumption.

However, she noted that the 0.2 percent growth rate remains low among major economies and that Germany's economic growth momentum is still insufficient.

Destatis figures showed German exports fell by 0.3 percent in 2025, marking a third consecutive annual decline, amid falling shipments of cars, machinery and chemical products. Brand cited strong headwinds for exporters, including U.S. tariffs and a stronger euro.

"Export-oriented industries are facing difficulties, primarily due to relatively high labor and energy costs. The manufacturing sector faced even greater challenges in 2025, with increased U.S. tariffs and the appreciation of the euro against major trading partners' currencies leading to a decline in the price competitiveness of German exports in major international markets," said Brand.

Data showed that gross value added in manufacturing fell by 1.3 percent in 2025, marking a third straight year of decline. The automobile and machinery manufacturing industries saw significant declines. Economic activity in the chemical and other energy-intensive sectors was also lower than in previous years.

German economy grows 0.2 pct in 2025, ending two years of contraction

German economy grows 0.2 pct in 2025, ending two years of contraction

German economy grows 0.2 pct in 2025, ending two years of contraction

German economy grows 0.2 pct in 2025, ending two years of contraction

Chinese Foreign Minister Wang Yi said on Monday that the urgent priority concerning the current situation in the Middle East is to immediately halt military operations and prevent the conflict from further spilling over.

Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, made the remarks in phone talks with Omani Foreign Minister Sayyid Badr bin Hamad Al Busaidi.

During the phone call, Al Busaidi said that, with Oman's mediation, Iran-U.S. negotiations had achieved unprecedented progress. However, he added, it was regrettable that the United States and Israel abandoned the existing outcomes of the talks and launched a war.

If the war continues, it will lead to further casualties and property losses, he said, urging all parties to work together for an early ceasefire.

As a permanent member of the UN Security Council, China has consistently followed the purposes and principles of the UN Charter and is a reliable positive force, Al Busaidi said.

At this sensitive moment and under complex circumstances, Oman expects China to play an important role, Al Busaidi said, adding that the Omani side will make every effort to ensure the safety of Chinese citizens and institutions in Oman.

Wang said that Oman has actively mediated the Iran-U.S. negotiations and made great efforts to safeguard regional peace, which China appreciates.

Despite progress in the talks, the United States and Israel deliberately provoked a war against Iran, clearly violating the purposes and principles of the UN Charter, Wang said.

Calling for keeping the situation from reaching a point of no return, Wang said that China urges all parties to make joint efforts to this end and supports Oman in continuing its mediation work, Wang said, adding that China is also willing to play a constructive role, including upholding fairness and justice at the UN Security Council, striving for peace and stopping the war.

Wang said China attaches importance to the legitimate concerns of Gulf countries and supports them in safeguarding their sovereignty and national security. The spillover of war does not serve the fundamental and long-term interests of Gulf countries, he added.

China expects Gulf countries to strengthen independence, oppose external interference, develop good-neighborly relations, enhance solidarity and cooperation, and take their future into their own hands, Wang said.

Chinese FM calls for immediate stop of military operations in Middle East

Chinese FM calls for immediate stop of military operations in Middle East

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