Germany GDP Grows 0.3 Percent in Second Quarter

The Federal Statistical Office reported that Germany's economy grew by 0.3 percent in the second quarter of 2026, surpassing the preliminary estimate of 0.2 percent. This represents the third consecutive quarterly increase since the end of the pandemic, driven largely by a 0.2 percent rise in net exports.

While private consumption and government spending each increased by 0.1 percent, capital investment unexpectedly declined by 0.2 percent. The recovery is supported by government spending on defense and infrastructure, as well as tax, pension, and bureaucracy reforms introduced by Chancellor Friedrich Merz's coalition.

Economic momentum faces ongoing challenges. The German Federal Bank reports that record-low water levels in the Rhine river are hindering activity, while high energy prices and conflict in the Middle East continue to create headwinds.