US EditionGerman economy grows by 0.3% in first quarter, beating forecast
Household consumption and government spending drove the gain as analysts had expected 0.2% growth and officials warned the Iran war could weaken the outlook.
- On Thursday, April 30, 2026, preliminary data showed Germany's economy expanded 0.3% in the first quarter, exceeding expectations despite energy price shocks from the war in Iran.
- Rising energy costs pushed German EU-harmonised inflation to 2.9% in April, prompting the government to halve its 2026 growth forecast to 0.5%.
- Labour Office head Andrea Nahles stated "there is still no sign of a turnaround in the labour market," as unemployment rose to 3.006 million in April.
- Volkswagen reported a 28.4% drop in first-quarter net profit to $1.82 billion, with CEO Oliver Blume citing "Wars, geopolitical tensions... are creating headwinds."
- To restore profitability, Volkswagen plans to cut 50,000 jobs in Germany by 2030, while Finance chief Arno Antlitz warned existing cost-cutting measures are insufficient.
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This performance was supported by the strengthening of private and government consumption, in addition to a slight advance in exports
Despite the Iran war, the German economy grew somewhat more strongly than expected at the beginning of the year. According to the Federal Statistical Office, both private and government consumption expenditure as well as exports increased – at least temporarily.
High fuel prices at the petrol stations, problems in the supply chains: The Iran war leaves traces in the economy. But in the first quarter it went up surprisingly significantly.Despite all the crises at the beginning of the year, the German economy grew more clearly than expected.In the first quarter, gross domestic product (GDP) increased by 0.3 percent compared to the previous quarter, as the Federal Statistical Office calculated on the basis…
High fuel prices at the petrol stations, problems in the supply chains: The Iran war leaves traces in the economy. In the first quarter, however, it went up surprisingly significantly.
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