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Stronger exports help Europe’s largest economy beat forecasts, though weak consumer spending and falling investment continue to weigh on the recovery.
Germany’s economy returned to growth in the second quarter of 2026, expanding 0.2 per cent from the previous three months, driven by stronger exports, according to preliminary data released by the country’s statistics office on Thursday.
The growth exceeded market expectations, with economists surveyed by Reuters forecasting a more modest 0.1 per cent increase in gross domestic product (GDP).
According to the Federal Statistical Office, rising exports provided the biggest boost to the economy during the April-June quarter, offering some relief after a challenging start to the year.
However, the broader recovery remained uneven. Household consumption continued to show subdued momentum, reflecting cautious consumer sentiment, while capital investment declined from the previous quarter, highlighting persistent weakness in domestic demand.
The latest figures suggest Germany’s export-oriented economy is benefiting from improving external demand, but sluggish consumer spending and lower business investment continue to pose challenges for a sustained recovery.
Investors will now watch upcoming economic indicators and policy signals for clues on whether Europe’s largest economy can maintain its growth momentum in the second half of the year.
