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Germany's Q2 GDP grows 0.3% as exports drive rebound

Germany's economy expanded 0.3% quarter-on-quarter in Q2, beating expectations, while exports surged 2.6% and manufacturing added 0.9% to growth. Annual revision adds 0.8 percentage point to 2011-2021 GDP data.

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Elena Kovač · Central Banks Desk · 27 Aug 2026 · 08:53 · 1 min read
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Germany's Q2 GDP grows 0.3% as exports drive rebound

Germany’s gross domestic product grew 0.3% quarter-on-quarter in the second quarter of 2026, outpacing a 0.2% consensus forecast, as exports and manufacturing offset weaker domestic demand.

The Federal Statistical Office revised Q2 growth upward from an initial estimate of 0.2%, while Q1 GDP was also adjusted higher to 0.4% from 0.3%. On an annual basis, price-adjusted GDP rose 1% compared with Q2 2025, matching the calendar-adjusted result. Ruth Brand, president of the Federal Statistical Office, noted that growth remained consistent with the start of the year and was primarily driven by strong export performance.

Exports of goods and services increased 2% from the prior quarter, with goods exports up 2.6%, while imports rose 1.5%. Gross fixed capital formation declined 0.2%, including a 1.4% drop in machinery and equipment investment. Final consumption expenditures edged up 0.1%, with both household and government spending contributing equally.

Gross value added, adjusted for prices, seasonality and calendar effects, grew 0.4%, with the manufacturing sector expanding 0.9%. Employment fell by 212,000 people to 45.7 million, a 0.5% decrease year-on-year.

The Federal Statistical Office also revised historical GDP data from 2011 to 2021 upward by up to 0.1 percentage point, cumulatively adding 0.8 percentage point to growth over the period. The 2024 annual GDP figure was revised from a 0.5% contraction to flat growth, while the 2025 estimate remained unchanged at 0.2% expansion.

Among Germany’s major trading partners, the European Union grew 0.5% in Q2, with Spain leading at 0.7%, while France and Italy each expanded 0.2%. The United States reported 0.4% quarterly growth.

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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