The German government on Wednesday announced an economic expansion prognosis of 0. 3% by 2025, below the 1. 1% prognosis last October.

The shrinking expansion projections occur in the middle of Donald Trump, from the president of the United States, return to the White House and the next federal elections next year.

A report by the Economy Ministry expected Germany’s poor economic performance to extend to this year as well, following two years of recession.

“Germany is caught in stagnation,” the Minister of Economy, Robert Habeck, at a press convention in Berlin.

The report said the expansion review forecasts “primarily due” to the government’s cave last November, which led to a halt in measures aimed at inspiring the expansion.

Chancellor Olaf Scholz’s coalition government collapsed in November, after his Social Democrats (SPD) and the Greens took sides with their coalition partner, the neoliberal loose democrat (FDP), in budget disagreements.

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As the largest economy in Europe awaits a new government after the elections of February 23, the country’s long -term economic policy remains uncertain.

The report also said the downgrade was due to the “significantly” increased risks to trade, amid the return of US President Donald Trump to the White House, and the potential changes to US policy he could introduce.

Meanwhile, a survey conducted through union investment provider funds found that 53% of respondents expected their own monetary scenario to remain strong over the next 12 months, while 30% even thought it would improve.

RMT / JCG (AFP, DPA)