German economy on course for growth
Germany’s economy grew strongly towards the end of 2025. This year, a high level of public investment is expected to give the upturn an additional boost.
Wiesbaden (dpa) – Thanks to its strongest quarter in three years, the German economy heads into 2026 with fresh momentum. In the fourth quarter of 2025, gross domestic product (GDP) rose by 0.3 per cent compared with the previous quarter, the Federal Statistical Office confirmed, with
growth being driven primarily by rising private and government consumer spending. Many consumers have more money in their pockets thanks to rising wages. But investment in construction also rose significantly. One positive point from economists’ perspective was that investment in equipment – i.e. machinery, devices and vehicles – was also higher than in the previous quarter.
In 2026, state investment worth billions, enabled by a relaxation of Germany’s debt brake rules, is expected to give the economy a further boost. There are increasing signs of a turnaround in industry after a long downturn. Sentiment among the leadership of German companies has recently brightened more than expected. Exports, too, are making German manufacturers more confident again – despite the ongoing uncertainty surrounding the tariff policy being pursued by US President Donald Trump.
