US EditionGermany’s troubled economy shows modest growth after two years of shrinkage
Germany’s modest 0.2% growth in 2025 was driven by private and government spending despite weak exports and investment, Destatis reported.
- The German economy grew by 0.2% in the final quarter of 2025 and increased by 0.2% over the full year, after two years of recession.
- Household consumption and government spending increased, while investment decreased by 0.5% compared to the previous year.
- Germany's export business faced headwinds due to higher US tariffs, a stronger euro, and increased competition from China.
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German economy grows for first time since 2022
Germany’s economy grew 0.2% last year, the first time it has shown annual growth since 2022. Europe’s largest economy has struggled with declines in its vital manufacturing sector; carmakers in particular have suffered in the face of Chinese competition and US tariffs, while a strong euro has hit exports. Chancellor Friedrich Merz loosened debt laws this year, freeing up cash to boost investment in infrastructure and defense; economists hope the…
The largest European economy has grown for the first time since 2022. The return, however, is a good news for Romania. The industry from us, strongly connected with Germany, probably had another year of decline – the third consecutive.
The German economy grew slightly in 2025. After two consecutive years of recession, the gross domestic product increased by about 0.2 percent in price-adjusted terms, according to the Federal Statistical Office. The figures were based on initial calculations.
In 2025, GDP rose by 0.2% (according to preliminary data) after two years of contraction. Manufacturing production fell again and exports also decreased, with the trade surplus halved. For the current year, growth is expected to be around 0.2%.
According to provisional calculations, German GDP is recovering by 0.2 percent in 2025. There is to be a noticeable upturn only in 2027.
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