Germany GDP Growth Beats Forecasts in Q4

2026-01-30 09:19 By Joana Taborda 1 min. read

The German economy expanded 0.3% on quarter in the last three months of 2025, the strongest performance in three quarters, compared to a flat reading in the previous period and above forecasts of 0.2%, preliminary estimates showed.

In particular, household and government expenditure increased.

Year-on-year, the GDP grew 0.4%, the most in three years, after a 0.3% rise in each of the previous three quarters and above forecasts of 0.3%.

The German economy thus ended 2025 in positive territory after a turbulent year, particularly for foreign trade.

The economy rose 0.2%, the first expansion in three years.

For 2026, the German government forecasts economic growth of 1%, as exports are expected to rise for the first time in three years, increasing by 0.8%.

Fiscal stimulus is projected to contribute around two-thirds of a percentage point to GDP growth.

Growth in 2027 is seen at 1.3%.



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