Germany Q2 final GDP +0.3% vs +0.2% q/q prelim
- Prior +0.4%
- GDP Y/Y +1.0% vs +0.9% prelim
- Prior +0.7%
- Full report here
Germany’s economy expanded by 0.3% q/q in the second quarter of 2026), exceeding the preliminary estimate of 0.2%. On an annual basis, GDP grew 1.0% highlighting a continued recovery in economic activity.
Destatis said the German economy is maintaining the growth momentum seen at the beginning of the year, with exports once again serving as the primary engine of growth.
The strongest contribution to growth came from external demand. Exports of goods and services increased 2.0% from the previous quarter, led by a 2.6% rise in goods exports, while services exports remained unchanged. Imports also rose, though at a slower pace, increasing 1.5% q/q.
The upward revision to GDP was partly driven by stronger than expected wholesale and retail trade activity and newly available trade data showing more robust export performance in June.
Compared with a year earlier, exports increased 3.7%, supported by strong demand for chemical products, electronics, optical products, and transport equipment. Trade with EU partners improved notably, while imports were boosted by higher purchases from the United States, China, and the European Union.
Despite stronger external demand, domestic investment remained uneven. Overall gross fixed capital formation fell 0.2% from the first quarter. Investment in machinery and equipment declined 1.4%, while construction investment edged up only 0.1%, indicating that Germany’s construction sector continues to struggle despite recovering from weather-related disruptions earlier in the year.
Consumption growth also remained modest. Household and government consumption both increased by just 0.1% q/q, suggesting domestic demand is still playing a limited role in the recovery.
The manufacturing sector delivered one of the strongest performances, with output rising 0.9%. Chemical producers and electrical equipment manufacturers recorded particularly solid gains. Most service sectors also expanded, with information and communication, real estate, and public services each growing 0.6%.
Financial and insurance activities were the main weak spot, with value added declining 0.7% during the quarter. On a yearly basis, manufacturing expanded 1.1%, marking the sector’s first annual increase since early 2023.
Despite stronger economic growth, the labour market remained under pressure. Employment declined by -0.5% compared with the second quarter of 2025, leaving total employment at approximately 45.7 million people. Employment fell across manufacturing, construction, and, notably, the services sector for the first time since the pandemic.
However, productivity improved significantly. GDP per hour worked increased 1.5% y/y, reflecting stronger output despite a smaller workforce. Household finances continued to improve during the quarter. Gross wages and salaries per employee increased 4.4% y/y, while total net wages and salaries rose 4.7%.
Germany’s economic growth remained slightly below the broader European average. The European Union expanded 0.5% q/q, compared with Germany’s 0.3%. Among the largest EU economies, Spain led growth with a 0.7% expansion, while France and Italy each grew 0.2%. On an annual basis, Germany’s growth rate of 1.0% also lagged the EU average of 1.2%.
This article was written by Giuseppe Dellamotta at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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