Germany surprised markets. The economy has accelerated despite the fears
Germany’s GDP increased in the first quarter of 2025 by 0.4 percent. This is a better result than forecast. The economy was powered by exports and investments.
In the first quarter of 2025, the German economy recorded an GDP increase by 0.4 percent. Compared to the previous quarter – the Federal Statistical Office in Wiesbaden said. This result turned out to be better by 0.2 percentage points. from preliminary estimates. The last time equally strong growth rate was recorded in the third quarter of 2022.
A surprising result
The President of the Office, Ruth Brand, indicated that the reason for a favorable correction was a surprisingly good economic result in March, and above all improvement in the processing industry and better export data than expected.
Foreign trade played a key role in improving the result. Export increased by 3.2 percent Quarter to the quarter, mainly thanks to the sale of cars and pharmaceutical products, especially for the American market. Imports also increased – by 1.1 percent, but to a lesser extent.
Private consumption increased by 0.5 percent, which means acceleration compared to previous periods. In turn, public consumption dropped by 0.3 percent, which may be the result of temporary budget restrictions. In total, consumption increased by 0.2 percent.
Investments have also increased – expenditure on buildings and buildings increased by 0.5 percent, and investments in equipment by 0.7 percent. Total investments increased by 0.9 percent
Increase in production
Production in the total economy, measured by gross added value, increased by 0.6 percent. After four quarters of declines. The industrial sector increased production by 1 percent, and construction by 0.9 percent Chemical, machine and automotive industries were doing the best in industry. The service sector recorded increases, among others in the areas of communication (+1.7 percent) and trade and transport (+1.1 percent), with a decrease in finance, education and health care.
Per year, gross added value dropped by 0.7 percent, with the largest declines in construction (-3.5 percent) and industry (-1.6 percent). The number of working people fell by 60,000 (0.1 percent), while the total number of hours worked increased by 0.2 percent.
Against the background of other EU countries, Germany was better than the EU average. EU GDP increased by 0.3 percent, while Germany – by 0.4 percent Only Spain (+0.6 percent) recorded a better result. In the US, GDP fell by 0.1 percent
