Overview

• Statistical offices report no real GDP growth for Germany in the first half of 2025, with figures flagged as provisional and subject to revision.
• Bavaria’s economy shrank 0.4 percent in real terms as autos and machinery suffered from weaker exports, especially to China, prompting industry warnings from the vbw.
• Thuringia recorded 0.6 percent real growth, stabilizing from a 1.3 percent decline a year earlier, though auto suppliers and construction still face demand headwinds.
• Seven states contracted, including North Rhine-Westphalia (−0.2 percent) and Baden-Württemberg (−0.8 percent), while eight grew, led by Bremen at +2.9 percent; Saarland fell the most at −1.9 percent.
• The Ifo business climate index declined in September for the first time in six months, signaling a softer outlook for the second half of the year.