US EditionGermany’s troubled economy shows modest growth after two years of shrinkage
Growth was driven by higher household and government spending despite weak exports and a 1.3% manufacturing decline, the Federal Statistical Office said.
- 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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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.
Watauga Democrat
German economy returns to growth, but headwinds fierce
Germany's economy eked out meagre growth in 2025 and dodged a third straight year of recession, data showed Thursday, but Europe's languishing industrial powerhouse still faces huge challenges to return to long-term health.
Associated Press News
Germany's troubled economy shows modest growth after two years of shrinkage
Germany's economy returned to modest growth last year after two years of decline. Official figures published Thursday show a 0.2% increase in GDP for 2025, driven by stronger consumer and government spending.
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