IW expects no economic growth in Germany this year, Rheinische Post reports

BERLIN, Sept 17 (Reuters) - Germany's IW institute expects Europe's largest economy will not grow at all in 2025, trimming its forecast from earlier this year by 0.2 points, and predicts just a 1% expansion next year, the Rheinische Post newspaper reported on Wednesday.

Germany is the sole G7 economy not to have grown in the last two years as a series of challenges have stymied recovery plans, most recently U.S. President Donald Trump's 15% tariffs on most goods imported from the EU, which kicked in last month.

Leading economic institutes, of which IW is one, have repeatedly postponed their forecasts of a recovery, though recent investor sentiment surveys have pointed to an upswing.

"German foreign trade remains in a disorientation stress," the newspaper quoted the institute as saying. "Geopolitical denormalisation and U.S. trade policy are weighing on global trade."

Uncertainty about future employment was a constraint on consumer-led growth, while investors remained cautious due to the manifold sources of uncertainty, the IW added.