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German Economy Shrinks More than Anticipated in Q2
Germany’s economy contracted 0.3% qoq in Q2 2025, sharper than the preliminary estimate of a 0.1% drop and reversing the 0.3% growth seen in the previous period. It was the steepest quarterly decline since Q2 2024, driven by a fall in fixed capital formation (-1.4% vs 0.3% in Q1), reflecting weaker investment in both construction and equipment, primarily machinery, equipment, and vehicles. Net trade dragged on growth as exports slipped (-0.1% vs 2.5%), weighed by rising U.S. tariffs, while imports continued to rise (1.6% vs 1.6%). At the same time, private consumption slowed sharply (0.1% vs 0.6%) even as government spending rebounded (0.8% vs -0.3%), and inventory changes made a positive contribution. By sector, output shrank in manufacturing, construction, trade, transport, hospitality, and financial and insurance services. On a yearly basis, the economy grew 0.2%, slightly below the 0.3% expansion in Q1, though marking a second consecutive quarter of annual growth.
Published on 2025-08-22

German Economy Shrinks More Than Expected in Q2
Germany’s economy contracted 0.3% qoq in Q2 2025, sharper than the preliminary estimate of a 0.1% drop and reversing the 0.3% growth seen in Q1. It was the steepest quarterly decline since Q2 2024, driven by a fall in fixed capital formation (-1.4% vs +0.3%), reflecting weaker investment in both construction and equipment. Net trade also weighed on growth as exports slipped (0.1% vs 2.5%) while imports continued to rise (1.6%). Household consumption slowed (0.1% vs 0.6%) even as government spending rebounded (0.8% vs -0.3%), and inventory changes made a positive contribution. By sector, output contracted in manufacturing, construction, trade, transport, hospitality, and financial and insurance services. On a yearly basis, the economy grew 0.2%, slightly below the 0.3% expansion in Q1, though marking a second consecutive quarter of annual growth.
Published on 2025-08-22

German Economy Shrinks More Than Expected in Q2
Germany’s economy contracted 0.3% qoq in Q2 2025, sharper than the preliminary estimate of a 0.1% drop and reversing the 0.3% growth seen in the previous period. It was the steepest quarterly decline since Q2 2024, driven by a fall in fixed capital formation (-1.4% vs 0.3% in Q1), reflecting weaker investment in both construction and equipment. Net trade also weighed on growth as exports slipped (0.1% vs 2.5%) while imports continued to rise (1.6%). At the same time, household consumption slowed sharply (0.1% vs 0.6%) even as government spending rebounded (0.8% vs -0.3%), and inventory changes made a positive contribution. By sector, output shrank in manufacturing, construction, trade, transport, hospitality, and financial and insurance services. On a yearly basis, the economy grew 0.2%, slightly below the 0.3% expansion in Q1, though marking a second consecutive quarter of annual growth.
Published on 2025-08-22

German Economy Shrinks More than Expected in Q2
Germany’s economy contracted 0.3% qoq in Q2 2025, sharper than the preliminary estimate of a 0.1% drop and reversing the 0.3% growth seen in the previous period. It was the steepest quarterly decline since Q2 2024, driven by a fall in fixed capital formation (-1.4% vs 0.3% in Q1), reflecting weaker investment in both construction and equipment. Net trade also weighed on growth as exports slipped (0.1% vs 2.5%) while imports continued to rise (1.6%). At the same time, household consumption slowed sharply (0.1% vs 0.6%) even as government spending rebounded (0.8% vs -0.3%), and inventory changes made a positive contribution. By sector, output shrank in manufacturing, construction, trade, transport, hospitality, and financial and insurance services. On a yearly basis, the economy grew 0.2%, slightly below the 0.3% expansion in Q1, though marking a second consecutive quarter of annual growth.
Published on 2025-08-22

German Economy Shrinks More than Expected in Q2
Germany’s economy contracted 0.3% qoq in Q2 2025, sharper than the preliminary estimate of a 0.1% drop and reversing the 0.3% growth seen in the previous period. It was the steepest quarterly decline since Q2 2024, driven by a fall in fixed capital formation (-1.4% vs 0.3% in Q1), reflecting weaker investment in both construction and equipment, primarily machinery, equipment, and vehicles. Net trade also weighed on growth as exports dropped (0.1% vs 2.5%) while imports continued to rise (1.6%). At the same time, household consumption slowed sharply (0.1% vs 0.6%) even as government spending rebounded (0.8% vs -0.3%), and inventory changes made a positive contribution. By sector, output shrank in manufacturing, construction, trade, transport, hospitality, and financial and insurance services. On a yearly basis, the economy grew 0.2%, slightly below the 0.3% expansion in Q1, though marking a second consecutive quarter of annual growth.
Published on 2025-08-22

German Economy Shrinks More than Expected in Q2
Germany’s economy contracted 0.3% qoq in Q2 2025, sharper than the preliminary estimate of a 0.1% drop and reversing the 0.3% growth seen in the previous period. It was the steepest quarterly decline since Q2 2024, driven by a fall in fixed capital formation (-1.4% vs 0.3% in Q1), reflecting weaker investment in both construction and equipment, primarily machinery, equipment, and vehicles. Net trade also weighed on growth as exports dropped (0.1% vs 2.5%) while imports continued to rise (1.6%). At the same time, private consumption slowed sharply (0.1% vs 0.6%) even as government spending rebounded (0.8% vs -0.3%), and inventory changes made a positive contribution. By sector, output shrank in manufacturing, construction, trade, transport, hospitality, and financial and insurance services. On a yearly basis, the economy grew 0.2%, slightly below the 0.3% expansion in Q1, though marking a second consecutive quarter of annual growth.
Published on 2025-08-22

German Economy Shrinks More than Anticipated in Q2
Germany’s economy contracted 0.3% qoq in Q2 2025, sharper than the preliminary estimate of a 0.1% drop and reversing the 0.3% growth seen in the previous period. It was the steepest quarterly decline since Q2 2024, driven by a fall in fixed capital formation (-1.4% vs 0.3% in Q1), reflecting weaker investment in both construction and equipment, primarily machinery, equipment, and vehicles. Net trade also weighed on growth as exports dropped (0.1% vs 2.5%) while imports continued to rise (1.6%). At the same time, private consumption slowed sharply (0.1% vs 0.6%) even as government spending rebounded (0.8% vs -0.3%), and inventory changes made a positive contribution. By sector, output shrank in manufacturing, construction, trade, transport, hospitality, and financial and insurance services. On a yearly basis, the economy grew 0.2%, slightly below the 0.3% expansion in Q1, though marking a second consecutive quarter of annual growth.
Published on 2025-08-22

German Economy Shrinks More than Anticipated in Q2
Germany’s economy contracted 0.3% qoq in Q2 2025, sharper than the preliminary estimate of a 0.1% drop and reversing the 0.3% growth seen in the previous period. It was the steepest quarterly decline since Q2 2024, driven by a fall in fixed capital formation (-1.4% vs 0.3% in Q1), reflecting weaker investment in both construction and equipment, primarily machinery, equipment, and vehicles. Net trade dragged on growth as exports slipped (-0.1% vs 2.5%), weighed by rising U.S. tariffs, while imports continued to rise (1.6% vs 1.6%). At the same time, private consumption slowed sharply (0.1% vs 0.6%) even as government spending rebounded (0.8% vs -0.3%), and inventory changes made a positive contribution. By sector, output shrank in manufacturing, construction, trade, transport, hospitality, and financial and insurance services. On a yearly basis, the economy grew 0.2%, slightly below the 0.3% expansion in Q1, though marking a second consecutive quarter of annual growth.
Published on 2025-08-22

German Economy Contracts in Q2 as Investment Declines
Germany’s economy contracted by 0.1% quarter-on-quarter in the second quarter of 2025, following a downwardly revised 0.3% expansion in the previous quarter, according to a preliminary estimate. The figure was in line with market expectations and marks the first quarterly contraction since Q2 2024. The decline was primarily driven by reduced investment in both equipment and construction. However, private and government consumption continued to grow, partially offsetting the overall slowdown. On an annual basis, GDP rose 0.4%, up from 0.3% in the first quarter.
Published on 2025-07-30

German Economy Contracts in Q2
Germany’s economy contracted by 0.1% quarter-on-quarter in the second quarter of 2025, following a downwardly revised 0.3% expansion in the previous quarter, according to a preliminary estimate. The figure was in line with market expectations and marks the first quarterly contraction since Q2 2024. The decline was primarily driven by reduced investment in both equipment and construction. However, private and government consumption continued to grow, partially offsetting the overall slowdown.
Published on 2025-07-30

German Economy Contracts in Q2 as Investment Declines
Germany’s economy contracted by 0.1% quarter-on-quarter in the second quarter of 2025, following a downwardly revised 0.3% expansion in the previous quarter, according to a preliminary estimate. The figure was in line with market expectations and marks the first quarterly contraction since Q2 2024. The decline was primarily driven by reduced investment in both equipment and construction. However, private and government consumption continued to grow, partially offsetting the overall slowdown.
Published on 2025-07-30

German Economy Contracts in Q2 as Investment Declines
Germany’s economy contracted by 0.1% quarter-on-quarter in the second quarter of 2025, following a downwardly revised 0.3% expansion in the previous quarter, according to a preliminary estimate. The figure was in line with market expectations and marks the first quarterly contraction since Q2 2024. The decline was primarily driven by reduced investment in both equipment and construction. However, private and government consumption continued to grow, partially offsetting the overall slowdown.
Published on 2025-07-30

German Q1 GDP Growth Higher Than Initially Thought
The German economy expanded by 0.4% quarter-on-quarter in the Q1 2025, revised upward from an initial estimate of a 0.2% rise, and rebounding from a 0.2% contraction in the previous period. This marks the sharpest economic expansion since Q3 2022, driven by accelerated growth in household consumption (0.5% vs 0.2% in Q4) and fixed investments (-0.3% vs 0.4%). Net trade also contributed positively to GDP, as exports advanced 3.2% (vs -3.1%), supported by stronger-than-expected growth in manufacturing output and exports from the initial March estimates. Meanwhile, imports rose at a softer rate of 1.1% (vs -0.7%). On the production side, most industries saw growth, with notable expansions in manufacturing (1% vs -0.3%), information and communications (1.7% vs -0.3%), and trade, transport, accommodation, and food services (1.1% vs 0.6%). On an annual basis, the economy stalled, compared to a 0.2% decline in Q4 and earlier estimates of a 0.2% fall.
Published on 2025-05-23

German Economy Grows as Expected in Q1
Germany's economy grew by 0.2% in the first quarter of 2025, matching market expectations and recovering from a 0.2% contraction in the previous quarter, according to a preliminary estimate. The rebound was supported by easing inflation and lower borrowing costs, which helped boost domestic demand. Business and consumer confidence also improved, driven by optimism surrounding the successful conclusion of coalition talks and the formation of a stable government—factors that helped offset ongoing concerns over volatile U.S. tariff policies. However, on an annual basis, Europe's largest economy contracted by 0.2%, marking its seventh consecutive quarter of recession.
Published on 2025-04-30

German Q4 GDP Contraction Confirmed at 0.2%
The German economy shrank by 0.2% quarter-on-quarter in the three months to December 2024, confirming preliminary estimates and following a 0.1% expansion in the previous period. The downturn was primarily driven by a negative contribution from net trade, as exports plunged 2.2% (vs. -1.9% in Q3), while imports increased 0.5% (vs. 0.6%). Additionally, household consumption growth slowed to 0.1% (vs. 0.2%), and government spending rose 0.4%, down sharply from 1.5% in Q3. Meanwhile, fixed investments rebounded (0.4% vs. -0.5%), mainly due to a recovery in construction investment. On the production side, most industries declined, with notable contractions in agriculture, forestry, and fishing (-1%), as well as manufacturing (-0.6%). On a yearly basis, the economy contracted 0.2%, confirming initial estimates and marking the sixth consecutive quarter of decline.
Published on 2025-02-25

Germany Economy Shrinks 0.2% in Q4
The German economy contracted 0.2% on quarter in the last three months of 2024, following a 0.1% expansion in Q3 and worse than forecasts of a 0.1% fall, preliminary estimates showed. Exports were significantly lower, offsetting a rise in private and government consumption. Year-on-year, the GDP also contracted 0.2%. Considering the full 2024, the German economy shrank 0.2%, following a 0.3% drop in 2023. For 2025, the government revised its 2025 growth forecasts lower to 0.3% from 1.1%. The economy minister stated that it is increasingly evident that Germany faces deep-rooted structural challenges, including a shortage of skilled labor, excessive bureaucracy, and weak investment in both the private and public sectors. The economy is facing considerable challenges, including soaring energy prices, weak external demand, and a decline in competitiveness. With parliamentary elections scheduled for February, business leaders are likely to call for reduced energy prices and taxes.
Published on 2025-01-30

German Economy Grows Less Than Initially Thought
The German economy expanded by 0.1% quarter-on-quarter in Q3 2024, revised down from an initial estimate of a 0.2% rise, and slightly rebounding from a 0.3% contraction in the previous period. Household consumption grew by 0.3%, recovering from a 0.5% decline in Q2, while government spending growth slowed to 0.4% from 1.6%. Fixed investments also fell at a softer pace (-0.1% vs. -2.1%), driven by smaller declines in construction (-0.3% vs. -2.2%) and machinery and equipment (-0.2% vs. -3.4%). Meanwhile, net trade contributed negatively to GDP, as imports rose 0.2% (vs. 1.2%) while exports dropped 1.9% (vs. 0.2%). On a yearly basis, the economy fell 0.3%, matching the same pace as in the previous period, and coming more than the initial estimates of a 0.2% drop.
Published on 2024-11-22

Germany Economy Unexpectedly Grows
The German economy expanded 0.2% qoq in Q3 2024, rebounding from a 0.3% fall in Q2, and beating forecasts of a 0.1% contraction, preliminary estimates showed. Government and household final consumption in particular, were up. Data for Q2 was revised to show the economy contracted at a sharper 0.3%, compared to previous estimates of a 0.1% decline. Year-on-year, the GDP shrank 0.2%, a sixth consecutive quarter of no growth, following a downwardly revised 0.3% fall in Q2. The German government projects a 0.2% contraction in GDP for 2024, marking the country’s first two-year recession since the early 2000s, following a 0.3% decline in 2023. The economy faces significant headwinds, including elevated energy costs, weak external demand, and a loss of competitiveness in the auto sector. However, the government expects a recovery in 2025, forecasting a 1.1% GDP growth driven by a rebound in private consumption, renewed demand for industrial exports, and a turnaround in investment activity.
Published on 2024-10-30

German Q2 GDP Contraction Confirmed
Germany’s economy shrank by 0.1% qoq in Q2 of 2024, matching preliminary estimates while shifting from a 0.2% growth in Q1. Private consumption fell by 0.2%, swinging from a 0.3% rise in Q1. At the same time, gross fixed capital formation deteriorated (-2.2% vs 0.1%), mainly pressured by declines in construction investment (-2.0% vs 0.8%) and equipment investment (-4.1% vs -1.6%). Also, net trade was a drag to the economy, reducing 0.1 percentage points following a positive contribution in the preceding quarter, with exports shrinking (-0.2% vs 1.3%) while imports stagnated (vs 0.8%). Meanwhile, government spending grew by 1.0%, a reversal from a 0.1% fall in Q1. On a yearly basis, the economy showed no growth, compared with a 0.1% contraction in Q1.
Published on 2024-08-27

Germany GDP Unexpectedly Shrinks
The German economy unexpectedly contracted 0.1% on quarter in the second quarter of 2024, reversing from a 0.2% growth in the first three months of the year and compared to forecasts of a 0.1% gain, preliminary estimates showed. There was a particular decline in investments in equipment and buildings as the industrial sector continues to be particularly strained by high interest rates. Year-on-year, the economy also shrank 0.1%, following a downwardly revised 0.1% fall in the previous period, and marking a fifth straight quarter of no growth. The European Commission expects the German economy to grow 0.1% in 2024, rebounding from a 0.3% contraction in 2023 as domestic demand is set to pick up slowly. On the other hand, investment is projected to remain well below pre-pandemic levels, constrained by continued high financing costs and exports are forecast to remain sluggish.
Published on 2024-07-30