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flag Bundesbank warns Germany could face a two-year recession due to escalating US trade war.

flag The Bundesbank warns Germany could face a two-year recession if the US trade war escalates, predicting a 0.5% decline this year and 0.2% in 2026 due to decreased exports and investment uncertainty. flag The German economy has already contracted over the past two years due to a manufacturing slump and high energy costs. flag However, the central bank forecasts a 1% rebound in 2027. flag The US is Germany's top trading partner, and Trump's proposed tariffs pose a significant threat.

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