German Q3 economic stagnation confirmed
Germany’s economy recorded no growth qoq in Q3 2025, in line with the preliminary estimate and following a 0.2% contraction in Q2.
Modest improvements in gross fixed capital formation (0.3% vs -1.1% in Q2), mainly driven by equipment and other facilities, alongside stronger government spending (0.8% vs 0.2%) and a positive contribution from inventories, helped offset weaknesses elsewhere.
Private consumption fell (-0.3% vs 0.1%), while net trade subtracted 0.3 ppts as exports shrank (-0.7% vs 0.3%) amid U.S. tariffs and imports stalled (vs -0.2%).
By sector, declines in manufacturing and construction were balanced by gains in trade, transport, hospitality, information and communication, and financial and insurance services.
On an annual basis, GDP grew 0.3%, unchanged from the previous two quarters.
Looking ahead, GDP growth is projected at 1.3% for 2026 and 1.4% for 2027, supported by higher public spending, likely helped by special infrastructure funds and increased defense outlays.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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