Europe's economy has stagnated at the end of last year as former growth engine Germany floundered to the end of a second straight year of shrinking output.

The German government slashed its gross domestic product expectations Wednesday, saying it was now forecasting just 0.3% growth in 2025.

The stuttering economic performance, coupled with an outlook overshadowed by the risks of trade tension with the U.S. and China, mean that the European Central Bank is almost certain to cut its key interest rates again Thursday, bringing its key deposit rate down to 2.75 percent.