{"id":48427,"date":"2025-07-30T21:02:20","date_gmt":"2025-07-30T21:02:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/48427\/"},"modified":"2025-07-30T21:02:20","modified_gmt":"2025-07-30T21:02:20","slug":"european-economy-sees-growth-of-only-0-1-as-scramble-to-get-ahead-of-us-tariffs-goes-into-reverse","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/48427\/","title":{"rendered":"European economy sees growth of only 0.1% as scramble to get ahead of US tariffs goes into reverse"},"content":{"rendered":"\n<p class=\"yf-1090901\">FRANKFURT, Germany (AP) \u2014 Europe&#8217;s economy barely grew in the April-June quarter as frantic earlier efforts to ship goods ahead of new U.S. tariffs went into reverse and output fell for the continent&#8217;s biggest economy, Germany.<\/p>\n<p class=\"yf-1090901\">Gross domestic product grew an anemic 0.1% compared to the previous quarter in the 20 countries that use the euro currency, the EU statistics agency Eurostat reported Wednesday. Growth was 1.4% over the same quarter a year ago.<\/p>\n<p class=\"yf-1090901\">And prospects are mediocre for the coming months, given the 15% tariff, or import tax, imposed on European goods in the U.S. under <a href=\"https:\/\/apnews.com\/article\/eu-tariffs-united-states-15-prices-growth-31e52a6dda17f3b5d70475e1cd0002ca\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:the EU-U.S. trade deal;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">the EU-U.S. trade deal<\/a> announced Sunday. The higher tariff will burden European exports with higher costs to either be passed on to U.S. consumers or swallowed in the form of lower profits.<\/p>\n<p class=\"yf-1090901\">The economy sagged after stronger than expected 0.6% growth in the first quarter, a figure inflated by companies trying to move product ahead of U.S. President Donald Trump&#8217;s additional tariff onslaught that was announced April 2, two days after the first quarter ended.<\/p>\n<p class=\"yf-1090901\">Output fell 0.1% in Germany and Italy, while growth of 0.3% in France was boosted by a rise in auto and aircraft inventories while domestic demand was otherwise stagnant. That left Spain as the only strong performer among the four largest eurozone economies at 0.7%<\/p>\n<p class=\"yf-1090901\">\u201cWith the 15% U.S. universal tariff likely to subtract around 0.2% from the region\u2019s GDP, growth is likely to remain weak in the rest of this year,\u201d said Franziska Palmas, senior Europe economist at Capital Economics.<\/p>\n<p class=\"yf-1090901\">Germany&#8217;s economy remains roughly the same size as it was before the pandemic six years ago, as its export-dominated business sector struggles with multiple issues including stronger competition from China, a lack of skilled workers, higher energy prices, lagging infrastructure investment, and burdensome regulation and bureaucracy.<\/p>\n<p class=\"yf-1090901\">Economist Palmas said that Germany &#8220;is likely to be hit harder than other major economies by tariffs and continue to struggle this year&#8221; before increased <a href=\"https:\/\/apnews.com\/article\/germany-economy-investment-merz-648aceb18b7c6c2bfa0a90f66a21a24c\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:government spending;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">government spending<\/a> from the new government under Chancellor Friedrich Merz, aimed at making up the infrastructure gap, starts to boost the economy in 2026.<\/p>\n<p class=\"yf-1090901\">On Wednesday, Germany\u2019s Cabinet approved a draft 2026 budget that foresees a second consecutive year of record government investment in priorities such as modernizing transport infrastructure, building homes, security and digitization. Spending is set to rise to 126.7 billion euros ($146.2 billion) next year from 115.7 billion euros in 2025.<\/p>\n<p class=\"yf-1090901\">\u201cOur top priority is to secure jobs and ensure new economic strength,\u201d Finance Minister Lars Klingbeil said.<\/p>\n","protected":false},"excerpt":{"rendered":"FRANKFURT, Germany (AP) \u2014 Europe&#8217;s economy barely grew in the April-June quarter as frantic earlier efforts to ship&hellip;\n","protected":false},"author":2,"featured_media":48428,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101,22948,6797],"class_list":{"0":"post-48427","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-frankfurt","11":"tag-germany"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/48427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=48427"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/48427\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/48428"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=48427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=48427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=48427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}