Europe

From Growth Engine to Fragile Giant: Why Germany’s Economy Is Struggling

The pillars of cheap energy, strong autos, and fiscal discipline have eroded, leaving Europe’s largest economy vulnerable.
From Growth Engine to Fragile Giant: Why Germany’s Economy Is Struggling
German Chancellor Friedrich Merz speaks at the opening ceremony of IAA Mobility 2025 auto show in Munich, Germany, on Sept. 9, 2025. Kai Pfaffenbach/Reuters
Evgenia Filimianova
|Updated:
News Analysis
Germany—the economic engine of Europe—enters the final stretch of 2025 in fragile condition. The world’s third-largest economy and the largest consumer market in the European Union, Germany last year generated roughly a quarter of the bloc’s GDP and stood as the United States’ top European trading partner.
Evgenia Filimianova
Evgenia Filimianova
Author
Evgenia Filimianova is a UK-based journalist covering a wide range of international stories, with a particular interest in foreign policy, economy, and UK politics.