Germany's economy grew by 0.4% in the first quarter of 2025 compared to the previous quarter, according to revised figures released by the Federal Statistics Office (Destatis). This growth rate is double the initial forecast of 0.2% and marks a notable improvement driven primarily by a surge in exports and stronger consumer spending.
Ruth Brand, president of Destatis, highlighted the "surprisingly good economic development in March," citing better-than-expected performance in manufacturing output and exports, especially in the automotive and pharmaceutical sectors. The increase in exports was largely attributed to producers accelerating shipments ahead of sweeping tariffs imposed by US President Donald Trump in April 2025.
Despite the quarterly growth, Germany's GDP remains slightly below the previous year’s level, with a 0.2% decline compared to the same quarter in 2024 after price and calendar adjustments. The broader economic outlook remains cautious, with some economic advisers downgrading growth forecasts for the full year 2025 to zero due to persistent stagnation.
Meanwhile, Germany’s new coalition government is considering extending the Bundeswehr’s involvement in peacekeeping missions in Kosovo, Bosnia, and Lebanon, reflecting ongoing commitments to international stability alongside domestic economic efforts.
This unexpected growth provides a temporary boost for Europe’s largest economy amid ongoing global trade tensions and domestic challenges.
Sources: Destatis, Reuters, Times of India, Xinhua, Fortune, Deutsche Welle
