Germany’s economy expanded more than expected in the second quarter of 2026, supported mainly by stronger exports.
According to the Federal Statistical Office, German gross domestic product increased by 0.3% quarter-on-quarter, exceeding the consensus forecast of 0.2%.
German GDP Beats Second-Quarter Forecasts
Although the latest result topped expectations, growth slowed slightly from the first quarter of 2026. Germany’s economy expanded by 0.4% in Q1, following an upward revision from the originally reported 0.3%.
The Federal Statistical Office also revised its preliminary estimate for the second quarter. The latest 0.3% reading was 0.1 percentage point higher than the initial 0.2% estimate published on July 30, 2026.
Ruth Brand, president of the Federal Statistical Office, said the German economy continued the positive momentum seen at the beginning of the year. She noted that exports were once again the main driver of economic growth.
Exports Provide the Main Boost
Germany’s total exports of goods and services increased by 2% compared with the first quarter.
Exports of goods were particularly strong, climbing 2.6%, while imports increased by 1.5%.
The stronger export performance helped offset weakness in other areas of the economy and played a major role in Germany’s better-than-expected GDP result.
Investment Weakens While Consumption Edges Higher
Investment activity remained under pressure during the quarter.
Gross fixed capital formation declined by 0.2%, while investment in machinery and equipment fell by 1.4%.
Meanwhile, final consumption expenditure increased slightly by 0.1%. Both household consumption and government spending also rose by 0.1%.
German Manufacturing Shows Improvement
Gross value added increased by 0.4% after adjusting for price changes, seasonal factors and calendar effects.
The manufacturing sector performed particularly well, recording growth of 0.9% during the quarter.
This improvement provided another positive signal for Germany’s industrial economy, which has faced significant pressure in recent years.
German GDP Rises 1% From a Year Earlier
Compared with the second quarter of 2025, Germany’s price-adjusted GDP increased by 1%.
The calendar-adjusted year-on-year growth rate was also 1%, confirming a moderate improvement in economic activity compared with the previous year.
However, employment declined during the same period.
Around 45.7 million people were employed in Germany and contributed to economic output during the quarter. That represented a decrease of approximately 212,000 workers, or 0.5%, compared with the second quarter of 2025.
Germany Revises Historical GDP Data
The Federal Statistical Office also revised historical GDP figures dating back to 2011 as part of its regular summer revision.
One of the most notable changes involved Germany’s economic performance in 2024.
Previously, GDP was estimated to have contracted by 0.5%. Following the latest revision, however, economic output for 2024 is now considered to have stagnated at 0% growth.
Germany’s annual growth rate for 2025 remained unchanged at 0.2%.
In addition, annual GDP growth rates between 2011 and 2021 were revised upward by as much as 0.1 percentage point in individual years. Overall, the revisions added a cumulative 0.8 percentage point to German GDP growth during that period.
Germany Trails Wider EU Growth
Despite Germany’s stronger-than-expected performance, its quarterly growth rate remained below that of the broader European Union.
The EU economy expanded by 0.5% in the second quarter of 2026, compared with Germany’s 0.3% increase.
Among the largest European economies, Spain recorded the strongest quarterly growth at 0.7%. France and Italy each expanded by 0.2%.
The Federal Statistical Office also reported that U.S. GDP increased by 0.4% compared with the first quarter of 2026.
On a year-on-year basis, Germany’s 1% economic growth also remained slightly below the EU-wide increase of 1.2%.
Germany’s Economy Maintains Positive Momentum
Germany’s second-quarter GDP figures suggest that the economy continues to recover gradually, with exports and manufacturing providing important support.
However, weaker investment and falling employment remain potential concerns. Germany also continues to grow more slowly than the wider European Union, highlighting the challenges facing Europe’s largest economy despite its recent improvement.
