Key facts
- Germany's gross domestic product contracted by 0.3% in the second quarter of 2025.
- This revised figure is a downward revision from the preliminary estimate of 0.2% growth.
- The decline was attributed to weaker industrial production and revised household consumption data.
- Gross fixed capital formation decreased by 1.4%, with machinery and equipment down 1.9% and construction down 2.1%.
- Exports fell by 0.1%, while imports rose by 1.6%.
Germany's gross domestic product (GDP) contracted by 0.3% in the second quarter of 2025 compared to the previous quarter, according to revised preliminary data from the Federal Statistical Office (Destatis). This represents a downward revision from the initial estimate of 0.2% growth released on July 30, 2025.
The deterioration in the economic picture is attributed to several factors, including weaker-than-expected industrial production and a downward revision of household final consumption expenditure. The construction industry, in particular, saw a sharper decline of 3.7% than initially assumed.
Gross fixed capital formation decreased significantly by 1.4% in the second quarter, with investments in machinery and equipment falling by 1.9% and in construction by 2.1%. Foreign trade also provided no positive contributions, as total exports of goods and services declined by 0.1%, while imports rose by 1.6%.
In the first quarter of 2025, GDP had grown by 0.3% quarter-on-quarter, following a 0.2% increase in the fourth quarter of 2024. The revised figures suggest a more challenging economic environment for Europe's largest economy.