FX.co ★ German Economic Stagnation in Q3 Confirmed

Germany's economy saw no growth in the third quarter of 2025, aligning with initial estimates, following a 0.2% decline in the second quarter. There were slight advances in gross fixed capital formation, which rose by 0.3% compared to a 1.1% decrease the previous quarter, primarily due to investments in equipment and other facilities. Additionally, government spending witnessed a stronger increase, climbing by 0.8% compared to 0.2%. Positive inventory contributions also helped mitigate challenges in other areas. However, private consumption decreased by 0.3% after a slight rise of 0.1%, and net trade had a negative impact by 0.3 percentage points as exports fell by 0.7% amidst U.S. tariffs, with imports remaining stagnant after a 0.2% decline. By industry, decreases in manufacturing and construction were counterbalanced by growth in trade, transport, hospitality, information and communication, and financial and insurance services. Annually, GDP maintained a 0.3% increase, consistent with the two preceding quarters. Forecasts suggest growth rates of 1.3% for 2026 and 1.4% for 2027.