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3w ago

Germany Revises Q1 2025 Growth to 0.4%, Driven by Exports and Consumer Spending

The fastest growth since 2022 stems from a March export surge ahead of U.S. tariffs, though experts warn of stagnation ahead.

Containers are pictured at a cargo terminal in Frankfurt, Germany, Thursday, May 22, 2025. (AP Photo/Michael Probst)
Germany's economy grew by 0.4 percent in the first quarter, twice as much as previously estimated
US President Donald Trump has announced sweeping tariffs on allies and adversaries alike

Overview

  • Germany's Q1 2025 GDP growth was revised upward to 0.4%, doubling the initial estimate of 0.2%.
  • The revision was attributed to a strong economic performance in March, particularly in exports and manufacturing.
  • Exports increased by 3.2% as U.S. importers accelerated purchases in anticipation of new tariffs.
  • Household consumption rose by 0.5% in the quarter, while government spending fell by 0.3% due to a provisional budget.
  • Economic advisers project stagnation for 2025, with modest 1% growth expected in 2026 supported by planned infrastructure investments.