Germany’s GDP growth in Q1 2025 was revised up to 0.4% QoQ and 0.0% YoY in the final estimate from 0.2% QoQ and -0.2% YoY in the initial estimate.

• This quarterly growth rate is the strongest since Q2 2022 when GDP grew 0.6% QoQ.
• Final consumption increased 0.2% QoQ with household consumption up 0.5% QoQ offsetting a -0.3% QoQ decline in government consumption.
• Gross capital formation dropped -3.2% QoQ as inventory changes contributed -0.9 ppts. Gross fixed capital formation growth was positive, up 0.9% QoQ.
• With exports up 3.2% QoQ and imports up 1.1% QoQ, the net exports component made a positive contribution of 0.9 ppts that cancelled out the drop in inventories.
• Productivity growth in the quarter was positive, up 0.4% QoQ per employee and up 0.5% QoQ per hour worked, but on an annual basis, both measures of productivity were still negative, down -0.1% YoY and -0.5% YoY.
• The industries leading growth were manufacturing (+1.0% QoQ), trade, transport, accommodation and food services (+1.1% QoQ), and information and communication (+1.7% QoQ).
• Destatis: “Growth was slightly higher than predicted in the first estimate due to the surprisingly good economic development seen in March. In particular, output in manufacturing and exports registered stronger growth than initially assumed.”