Germany GDP Stalls in Q3

2025-10-30 09:12 By Joana Taborda 1 min. read

The German economy stagnated in Q3 2025, following an upwardly revised 0.2% contraction in Q2, according to preliminary estimates.

The figure was in line with market forecasts.

Growth in gross fixed capital formation in machinery and equipment provided some support, but this was offset by a decline in exports.

On an annual basis, GDP expanded 0.3%, unchanged from the upwardly revised 0.3% growth recorded in the second quarter and also matching expectations.

At the start of October 2025, the German government revised its GDP growth forecast upwards, now expecting the economy to expand by 0.2% in 2025, compared with a previous projection of zero growth made in April.

For 2026, GDP is expected to rise by 1.3%, followed by 1.4% growth in 2027.

Officials noted that a substantial part of the expansion in the coming years will be driven by higher public spending, particularly through special funds for infrastructure investment and increased defense expenditure.



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