Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Germany’s economy sinks again as Sick Man of Europe misses yet another chance to rebound

Germany’s economy sinks again as Sick Man of Europe misses yet another chance to rebound

CryptopolitanCryptopolitan2025/08/30 03:40
By:By Jai Hamid

Share link:In this post: Germany’s inflation rose to 2.1% in August, beating forecasts and putting pressure on households. Unemployment hit 3.025 million, pushing the jobless rate to 6.4% as the labor market weakens. U.S. tariffs under Trump’s new trade deal are now targeting key sectors like pharmaceuticals.

Germany just blew another chance to pull itself out of the ditch.

On Friday, new economic data from Destatis showed rising inflation, surging unemployment, and no sign of recovery in sight, as the country braces for the full blowback from Donald Trump’s latest trade squeeze.

The inflation rate climbed to 2.1% in August, beating forecasts that had it landing at 2%. That’s a sharp move up from July’s 1.8%, which had been cooler than expected.

But core inflation, the figure without energy and food, didn’t budge. It stayed at 2.7%, the same as last month. That means pressure is building across every part of the economy, not just from groceries or gas prices.

That wasn’t the only red flag. Jobless numbers jumped hard. 3.025 million people were officially unemployed in Germany last month. That pushed the unemployment rate to 6.4%, a clear sign the labor market is getting softer by the day.

U.S. tariffs tighten the screws on exports

Germany’s slowdown is also getting hammered by global politics. A July trade deal between the EU and the U.S. brought in a new 15% tariff on a wide set of European products shipped to the U.S.

What caught businesses off guard was a fresh update earlier this month: those tariffs will now extend to key sectors like pharmaceuticals, which had been left out before. The sudden decision has rattled German exporters, many of whom already operate on thin margins.

See also Switzerland suspends all U.S. shipments starting August 26 over tariffs

The big question is who pays. In the U.S., prices are expected to rise. But in Germany and across the eurozone, it’s unclear. Some companies may cut prices to unload extra goods that aren’t selling in America.

Others might raise prices in Europe to make up for what they’re losing in the U.S. Either way, the hit lands hard at home.

The timing couldn’t be worse. Germany’s GDP grew 0.3% in the first quarter. Then it shrank 0.3% in the second. That’s not growth, that’s stalling. The country’s been flirting with recession for months, and the latest numbers show it’s not getting any better.

Carsten Brzeski, ING’s global head of macro, said in a note that “it remains to be seen how European and US companies will react to US tariffs.”

He warned that inflation in Germany might hold off the ECB from cutting rates next month. “A rather domestic theme will be the cooling of the German labour market, which should take away wage pressures and consequently inflationary pressures,” Carsten added.

ECB holds fire while consumer forecasts stay above target

The European Central Bank is caught in the middle. It held rates steady at 2% in July and isn’t expected to move when it meets again on September 11.

See also China floods global market with 300% surge in semi-finished steel

That’s despite rising signs that Germany and other eurozone economies are getting slammed by trade fallout and weak demand.

Consumers in the eurozone aren’t expecting relief anytime soon either. The ECB’s latest Consumer Expectations Survey, also released Friday, showed people still think inflation will stay above the ECB’s target.

Over the next 12 months, the median forecast stayed at 2.6%, the same as June. Even three years out, expectations rose to 2.5% from 2.4%. And five years from now? Still stuck at 2.1%, unchanged for eight straight months.

That leaves the ECB with no clear path. It wants to bring inflation back to 2%, which it officially targets “over an undefined medium term,” believed to be around three years. But right now, with inflation stuck and trade tensions growing, that target looks more like wishful thinking than a real plan.

For now, the Sick Man of Europe isn’t limping toward recovery, he’s face down on the pavement, and no one’s stopping to help.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

XRP's Long-Term Value Proposition in a Post-Regulatory Landscape

- SEC's 2025 ruling reclassified XRP as a commodity, enabling U.S. exchanges to relist it and unlocking institutional capital. - XRP-based ETF applications and EU's MiCA framework are driving global adoption and regulatory alignment. - Ripple's escrow strategy stabilizes supply but faces scrutiny over transparency and market concentration risks. - XRP's cross-border payment utility, via ODL and RLUSD, is expanding institutional adoption and cost savings. - Analysts project XRP to reach $3.65–$9.63 by year-

ainvest2025/08/31 10:45
XRP's Long-Term Value Proposition in a Post-Regulatory Landscape

Japan's 2026 Crypto Reforms: A Strategic On-Ramp for Global Institutional Capital

- Japan’s 2026 crypto reforms align tax policies, regulatory frameworks, and infrastructure with traditional finance to attract institutional capital and bridge global digital finance gaps. - A flat 20% capital gains tax on crypto (matching stocks) and three-year loss carry-forwards reduce barriers for institutional investors, aligning with global standards. - Reclassifying crypto as financial products under the FIEA introduces investor protections and paves the way for regulated Bitcoin ETFs in Japan. - T

ainvest2025/08/31 10:45
Japan's 2026 Crypto Reforms: A Strategic On-Ramp for Global Institutional Capital

Meme Coins with Deflationary Mechanics: The Arctic Pablo Coin Phenomenon

- Arctic Pablo Coin (APC) emerges as a deflationary meme coin with a $0.00092 Stage 38 presale price and $3.67M+ funding, offering 769.565% ROI if it reaches $0.008. - Its weekly token burns and 66% APY staking rewards create scarcity-driven value, contrasting with inflationary models of Shiba Inu and Fartcoin. - Analysts highlight APC's 10,700% ROI potential at $0.10 through deflationary mechanics, outperforming traditional meme coins lacking sustainable economic frameworks. - Upcoming listings on Pancake

ainvest2025/08/31 10:45
Meme Coins with Deflationary Mechanics: The Arctic Pablo Coin Phenomenon

Behavioral Finance and the Probability-Range Reflection Effect: Navigating Risk in BTBT's Strategic Shift

- Bit Digital's strategic shift from Bitcoin mining to Ethereum staking reflects its institutional-grade positioning in the crypto ecosystem. - The probability-range reflection effect explains how investors overweight low-probability losses (e.g., ETH price drops) while underweighting high-probability gains (e.g., staking growth). - With 105,015 ETH staked and 3.1% annualized yield, the company's $511.5M ETH holdings face volatility risks but offer long-term institutional adoption potential. - Behavioral s

ainvest2025/08/31 10:36
Behavioral Finance and the Probability-Range Reflection Effect: Navigating Risk in BTBT's Strategic Shift