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Economy/GDPArticle

German GDP rises 0.3% in Q2, exports lead growth

Second-quarter expansion beat expectations as exports surged 2%, while employment fell 0.5% year-on-year. Revisions added 0.8 percentage points to 2011-2021 GDP growth.

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Elena Kovač · Central Banks Desk · 28 Aug 2026 · 13:54 · 1 min read
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German GDP rises 0.3% in Q2, exports lead growth

Germany’s gross domestic product grew 0.3% in the second quarter, outpacing a 0.2% consensus forecast, as rising exports offset weaker domestic demand. The Federal Statistical Office reported the expansion on Tuesday, revising the preliminary estimate of 0.2% growth upward by 0.1 percentage point.

Exports of goods and services climbed 2% from the prior quarter, with goods exports up 2.6%, while imports increased 1.5%. The trade contribution helped offset declines in investment and consumption. Gross fixed capital formation fell 0.2%, including a 1.4% drop in machinery and equipment spending. Final consumption expenditure rose just 0.1%, with household and government spending each increasing by the same margin.

On an annual basis, price-adjusted GDP grew 1% compared with the second quarter of 2025, matching the calendar-adjusted figure. Manufacturing output expanded 0.9%, while gross value added rose 0.4% after adjusting for prices, seasonality and calendar effects. Employment totaled roughly 45.7 million people, down 212,000 or 0.5% from the same period last year.

The Federal Statistical Office also revised historical data in its summer update. The 2024 GDP contraction was adjusted to show no change from the prior year, up from a previously reported 0.5% decline. The 2025 annual growth rate remained at 0.2%, while cumulative revisions from 2011 to 2021 added 0.8 percentage points to growth over that decade.

Germany’s second-quarter performance trailed the broader European Union, where GDP rose 0.5% quarter-on-quarter. Spain led EU growth at 0.7%, while France and Italy each expanded 0.2%. The United States recorded a 0.4% increase in the same period.

Ruth Brand, president of the Federal Statistical Office, noted that the economy maintained momentum from the start of the year, attributing growth primarily to export strength.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Elena Kovač
Central Banks Desk

Elena covers macroeconomic data and policy across the eurozone, translating industrial output, inflation and growth figures into what they mean for markets.

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