Overview

• Destatis revised second‑quarter GDP to −0.3% quarter on quarter from an initial −0.1%, following growth of 0.3% in Q1 2025 and 0.2% in Q4 2024.
• Weakness was concentrated in manufacturing and construction, as gross fixed capital formation fell 1.4% with equipment investment down 1.9% and building investment down 2.1%.
• Service‑sector data, including hospitality, were revised down and private consumption was softer, while exports edged lower and higher imports produced a negative trade contribution.
• The Bundesbank expects output to be roughly flat in Q3 and allows only a slight full‑year gain as possible, citing a lack of domestic growth impulses from industry and construction.
• Revised annual figures show deeper declines in 2023 (−0.9%) and 2024 (−0.5%), even as the state deficit narrowed by about €19.4 billion in the first half of 2025 to roughly 1.3% of GDP.