Germany continues to slide into the abyss: Germany's public deficit rose to €127bn in 2025, up from €104bn a year earlier. That is the highest level since the 2022. The biggest increases came in the federal and local government. Germany's service sector growth slowed sharply in March due to weakened demand, influenced by the war in the Middle East. The S&P Global services PMI fell to its lowest point since September, indicating a slowdown in business activity and a drop in new business inflows.
