Volkswagen factory in Dresden, Germany
Germany’s GDP rose by 0.2% in 2025, compared to 2024, in what is the first increase after two consecutive years of contraction. The increase is mainly attributed to family and state spending.
According to preliminary estimates released this Thursday by Destatis, Germany’s Federal Statistical Office, the country’s economy, the largest in the euro zone, grew 0.2% in 2025after two years of recession.
After a 0.9% drop in 2023 and a 0.5% contraction in 2024, the German economy appears to be stabilizing despite the persistent industrial crisis, says .
The modest growth in 2025 is mainly explained by the increase in consumption of families and the Stateas stated by the president of Destatis, Ruth Brand.
Germany, once strongly dependent on Russian gascontinues to suffer from the deep and export-oriented weakened by the pandemic and subsequent energy crisis triggered by the invasion of Ukraine.
“Foreign trade faced difficultiesincluding the increase in American tariffs, the strengthening of the euro and greater Chinese competition”, explained Destatis.
Exports continue to fall
German exports fell for the third consecutive timethis time by 0.3%, with emphasis on the automotive, machinery and chemical products sectors, emblematic of the “Made in Germany” industry.
Now the situation of imports was completely differentwith a considerable increase of 3.6%, after two years of decline.
O investment was weak in construction and equipment, despite a billion-euro stimulus package adopted last year by the conservative government Friedrich Merz to modernize infrastructure and the Armed Forces.
Economists predict that Europe’s largest economy grow by about 1% this year, driven by a greater number of working days and by increasing government investment in defense and infrastructure.
