FX.co ★ German Economy Grows as Expected in Q1

Germany's economy experienced a growth of 0.2% in the first quarter of 2025, aligning with market forecasts and bouncing back from a 0.2% contraction in the previous quarter, as per preliminary estimates. This recovery was facilitated by the easing of inflation and decreased borrowing costs, which invigorated domestic demand. An uplift in business and consumer confidence also played a role, fueled by positive sentiment over the successful completion of coalition negotiations and the establishment of a stable government—elements that helped mitigate the ongoing apprehensions regarding the unpredictable nature of U.S. tariff policies. However, on an annual scale, the largest economy in Europe saw a contraction of 0.2%, marking its seventh consecutive quarter of recession.