India, Jan. 16 -- Germany's troubled economy returned to modest growth last year after two years of falling output, official figures showed, as hopes rise that Government spending on bridges, rail lines and defense may help end years of stagnation.

The expansion in gross domestic product of 0.2 per cent for 2025 was fuelled by stronger consumer and Government spending while exports sagged under the weight of more restrictive US trade policy under President Donald Trump, the German Federal Statistical Office said on Thursday.

That follows shrinkage of 0.5 per cent in 2024 and 0.9 per cent in 2023. "Germany's export business faced strong headwinds owing to higher US tariffs, the appreciation of the euro and increased competition from Chin...