Germany’s GDP increased +0.3% QoQ and +1.0% YoY in Q2 2026, with quarterly growth revised up from +0.2% as stronger exports and better-than-expected trade activity offset weak investment and subdued consumption.

• Price-, seasonally, and calendar-adjusted GDP rose +0.3% QoQ in Q2, +0.1 ppt above the preliminary estimate, while Q1 growth remained +0.4%, indicating that the economy maintained positive momentum through the first half of the year.

• Exports increased +2.0% QoQ, driven by a +2.6% rise in goods exports, while services exports were flat. Imports rose +1.5%, including +2.1% for goods and +0.3% for services, leaving foreign trade as a key source of support.

• Gross fixed capital formation declined -0.2% QoQ, with machinery and equipment investment falling -1.4%, while construction investment edged up +0.1%. Final consumption expenditure increased just +0.1%, with both household and government consumption rising +0.1%, indicating weak domestic demand.

• Gross value added increased +0.4% QoQ, led by manufacturing at +0.9%, while information and communication, real estate, and public services, education and health each rose +0.6%. Construction was nearly flat at -0.1%, and financial and insurance activities declined -0.7%.

• On a YoY basis, GDP increased +1.0%, while exports rose +3.7% and imports +2.5%. Goods exports increased +5.0%, supported by chemicals, data processing equipment, electronics and other transport equipment, while services exports declined -0.1%.

• Annual domestic demand remained mixed: machinery and equipment investment rose +1.1% YoY, but construction investment fell -1.5%. Household consumption increased only +0.1%, while government consumption rose +3.0%, creating a clear divergence between private and public spending.

• Total gross value added increased +1.1% YoY, with manufacturing also up +1.1%, marking its first annual increase since Q1 2023. Information and communication grew +3.9% and public services, education and health +2.1%, while construction value added fell -1.6%.

• Employment declined -0.5% YoY, or by 212,000 to about 45.7 million, while total labor volume also fell -0.5%. With output still growing, labor productivity increased +1.5% YoY both per hour worked and per person employed.