Germany faces two more years of recession if US trade war escalates: central bank

Volkswagen cars waiting last month to be put aboard a ship for export near the company's factory in Emden, northwestern Germany Ina FASSBENDER

Germany could face two more years of recession if a trade war with the United States escalates sharply, the central bank said Friday, a bleak warning for Europe's struggling top economy.

If US President Donald Trump's tariffs were to be implemented in full from July and the EU were to retaliate, then German output would de

This would be due to a "marked de

There would be a return to growth in 2027, with a rebound of one percent, it said.

The eurozone's traditional growth engine has already contracted for the past two years due to a manufacturing slump and surging energy prices after Russia invaded Ukraine, but hopes had been high for a modest