Key facts
- Germany's economy grew by 0.3% in the second quarter of 2026.
- This growth rate exceeded the preliminary estimate of 0.2%.
- The first quarter of 2026 saw a 0.3% GDP increase.
- Government deficit reached 71.3 billion euros in the first half of 2026.
The German 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.
However, detailed results for the second quarter of 2025 reveal a more complex picture. In that quarter, the gross domestic product (GDP) fell by 0.3% compared to the previous quarter, a sharper decline than initially reported. This downturn was attributed to worse-than-expected industrial production and construction industry performance, as well as downward revisions in household final consumption expenditure. Gross fixed capital formation saw a significant decrease of 1.4%, with machinery and equipment down 1.9% and construction down 2.1%. Exports of goods and services declined by 0.1%, while imports rose by 1.6%. Overall gross value added also decreased by 0.2% in the second quarter of 2025.
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.