Germany says economic situation stable but exports remain weak

BERLIN

The German economy’s situation has remained stable despite the tense situation, as the country came under external pressures due to weak demand, declining competitiveness, and isolated bottlenecks in intermediate products, according to the Economic Affairs and Energy Ministry on Monday.

The ministry stated that the country’s economy has recently seen a gradual stabilization led by fiscal stimulus measures, and although the global economy remains relatively resilient, leading indicators for German foreign trade show almost no positive signals.

The report showed that Germany’s export sector showed some recovery, instead of a comprehensive recovery across the economy.

It said the negative effects of US tariffs may still be felt significantly at the beginning of 2026, which means the sales expectations of German exporters will be affected in the coming months.

It added that the corporate bankruptcies in Germany remained at a high level, as filings surged 11.7% year-on-year to some 18,125 in January-September.