Overview
- Germany’s GDP grew 0.2% in 2025 after declines of 0.5% in 2024 and 0.9% in 2023, official data show.
- Preliminary figures indicate the economy expanded 0.2% in the fourth quarter from the previous three months.
- Household and government spending underpinned the result, while investment remained weak in equipment and construction.
- Exports contracted 0.3% for a third straight year and manufacturing output fell 1.3%, with autos and mechanical engineering suffering most.
- The Merz government is ramping up infrastructure and defence spending with a 1.3% growth projection for 2026, as the Bundesbank and economic institutes urge structural reforms.