Germany Q1 GDP Growth Confirmed at 0.3%

Germany’s economy expanded 0.3% in Q1 2026, matching preliminary estimates and slightly accelerating from a 0.2% rise in the previous period. It marked the fastest quarterly growth since Q1 2025, supported by stronger external demand, with exports sharply rebounding (3.3% vs -1.5% in Q4), while import growth stayed subdued (0.1% vs 1.0%). Meantime, government spending continued to grow (1.1% vs 1.5% in Q4) even as household consumption was flat after rising 0.6% previously, suggesting weak domestic demand. Gross fixed capital formation fell 1.5% after increasing 1.3% previously, dragged by lower construction investment (-2.5% vs 0.8%) and weaker equipment spending (-1.2% vs 2.5%), while growth in other facilities also slowed (0.6% vs 1.0%). Inventory changes weighed on the economy, subtracting 0.9 percentage points after contributing positively in Q4. On an annual basis, the GDP grew 0.4% in Q1, unchanged from the prior quarter.

Germany’s gross domestic product rose 0.3% in the first quarter of 2026, above market expectations of a 0.2% growth and following a downwardly revised 0.2% increase at the end of 2025. Growth was supported by stronger private and government consumption, while exports also showed an uptick according to preliminary estimates. On an annual basis, the economy expanded 0.3% compared with the first quarter of 2025

Germany’s economy expanded by 0.3% in the fourth quarter of 2025, confirming preliminary estimates and marking a clear rebound from the stagnation recorded in the previous quarter. The figure represents the fastest quarterly growth since the first quarter of 2025, supported by easing inflation and lower borrowing costs, which boosted domestic demand. Household consumption rose by 0.5%, compared with no growth in Q3, while government spending increased by 1.1%, up from 0.6% previously. Construction investment also rebounded sharply, climbing 1.6% after contracting 0.7% in the prior quarter. However, inventory changes shaved 0.3 percentage points off GDP, and net external demand reduced growth by 0.1 percentage points, weighed down in part by US tariffs. On an annual basis, the economy grew 0.4% in Q4, accelerating from 0.3% in Q3. For the full year 2025, GDP edged up 0.2%, marking a modest recovery after a 0.5% contraction in 2024.