German economy grows 0.3% in Q2, exceeding initial estimates

Germany's economy experienced a growth of 0.3% in the second quarter of 2026, according to the Federal Statistical Office (Destatis). This figure is an upward revision from the preliminary estimate of 0.2% and follows a 0.3% expansion in the first quarter of 2026. Business morale also reached its highest point in a year in August, suggesting a potential turnaround after years of sluggish growth, driven primarily by stronger exports. Separately, the general government deficit in Germany increased to 71.3 billion euros in the first half of 2026, which is 36.6 billion euros higher than the same period last year. This deficit ratio stands at 3.1% of GDP, exceeding the 3% reference value set by the Maastricht Treaty.