The German Gross Domestic Product (GDP) grew by 0.3 percent in the first quarter of 2026 compared to the fourth quarter of 2025, based on price, seasonal, and calendar adjustments. This result confirmed the initial estimate released at the end of April. According to Ruth Brand, President of the Federal Statistical Office, the economy showed positive momentum.
In the area of external trade, domestic demand saw an increase, even as export momentum slowed. This was partially due to a stronger domestic market.
In the first quarter, consumption increased somewhat, though growth decelerated compared to the previous quarter. This slowdown was partly attributable to the rising price of goods.
The labor market remained stable, with the number of employed persons growing slightly. The increase in employment was concentrated in the service sector.
In the investment area, business investment saw a significant decline. This was due to the uncertain economic outlook and the global energy crisis.
Regarding production, industry fell slightly, while construction saw a slight positive change.
In the second half of the year, industrial production is expected to decline further due to energy prices and global uncertainty.
“Key Financial Data:”
” “Private Sector Credit:” Decreased slightly.
” “Public Sector Credit:” Increased, primarily due to capital expenditures.
“Inflation and Wages:”
” The annual inflation rate slowed slightly in the first quarter.
” Wages continued to rise, though the growth slowed compared to the previous quarters.
“Structural Changes:”
” The shift toward renewable energy sources represents a strong structural trend.
” Investment in digitalization is also accelerating across various sectors.
“International Context:”
” Global trade remains impacted by geopolitical tensions and energy shortages.
” The European Central Bank is expected to tighten monetary policy further.
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“”(Self-Correction/Review
