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Germany's economy in crisis: exports are collapsing!
The EU economy is growing moderately, Germany is struggling with stagnating exports and company bankruptcies. Latest GDP data and analysis.
Germany's economy in crisis: exports are collapsing!
The economic situation in Germany and the European Union is currently showing worrying trends. Reported on August 14, 2025 daily news that economic output in the European Union (EU) grew by 0.2 percent in the second quarter of 2025. This increase comes against the backdrop of a weakening German market, which contributes heavily to the overall EU economy.
In the first half of 2025, the gross domestic product (GDP) of the EU countries amounted to more than nine trillion euros, with Germany bringing in almost a quarter of that. While Holanda and Spain recorded growth during this period, Germany is struggling, whose economic output fell by 0.3 percent in the first quarter and even by 0.1 percent in the second quarter.
Challenges for the German economy
According to the Bundesbank, the competitiveness of German exports has decreased. Around 40 percent of German economic output comes from exports, but rising imports and falling exports contribute to uncertainty. The number of company bankruptcies in Germany is continually increasing, affecting not only old but also newer companies.
In June 2025, Germany recorded its lowest production volume since the low point of the pandemic. This development is caused by several factors: outdated products, high energy prices and increased wages as well as complex administration contribute to the weak exports.
The context of the European Union
The European Union itself, a supranational political and economic union of 27 member states, has had to overcome numerous challenges in recent years. The EU covers an area of 4.2 million km² and is home to over 450 million people. In 2024, the EU generated a nominal GDP of around 17.935 trillion euros, equivalent to 5.5 percent of the world's population.
The EU pursues a variety of policies and has institutions such as the European Parliament and the European Commission that are active in international affairs and humanitarian aid. By creating a single market that allows the free movement of services and goods and a successful customs union, the EU strives to ensure economic stability for its member states.
Additionally, the EU is planning reforms to prepare for a possible enlargement to 35 member states by 2030. It remains to be seen how these factors will affect the various economies within the union, particularly that of Germany.