Germany’s gross domestic product expanded 0.3% in the second quarter of 2026, outpacing the 0.2% consensus forecast and reversing a softer first-quarter performance that was revised upward to 0.4%. The Federal Statistical Office reported the upward revision on Tuesday, noting that the detailed Q2 reading was 0.1 percentage point higher than the initial estimate published on July 30.
Exports drove the quarterly increase, with total goods and services shipments rising 2% from the prior quarter. Goods exports climbed 2.6%, while imports advanced 1.5%, indicating a modest net positive contribution to growth. Gross fixed capital formation, however, declined 0.2%, with investment in machinery and equipment falling 1.4%, signaling cautious business spending.
Final consumption expenditure edged up 0.1%, with both household and government consumption contributing equally to the gain. Price-adjusted gross value added rose 0.4%, supported by a 0.9% increase in manufacturing output. On an annual basis, GDP grew 1% compared with the second quarter of 2025, matching the calendar-adjusted year-on-year figure.
Employment fell by 212,000 people to 45.7 million in Q2, a 0.5% decline from the same period last year, underscoring persistent labor market softness despite the growth rebound.
Historical revisions to GDP data dating back to 2011 were also released, with 2024 output revised from a 0.5% contraction to flat growth at 0%. The annual growth rate for 2025 remained unchanged at 0.2%, while earlier years saw upward adjustments of up to 0.1 percentage point, cumulatively adding 0.8 percentage point to GDP growth over the decade.
The European Union’s GDP expanded 0.5% in the quarter, with Spain leading among major economies at 0.7%, followed by France and Italy at 0.2% each. The U.S. recorded 0.4% growth over the same period.
Ruth Brand, president of the Federal Statistical Office, said the economy maintained growth momentum seen at the start of the year, attributing the expansion primarily to stronger exports.
