Germany’s GDP rose +0.3% QoQ and +0.5% YoY in Q1 2026 (price-adjusted), confirming modest expansion supported by exports and consumption.

• GDP increased +0.3% QoQ in Q1 (Q4: +0.2%), indicating a continuation of positive growth momentum into early 2026 following a late-2025 uptick.
• On a YoY basis, GDP rose +0.5% (or +0.4% calendar-adjusted), showing modest annual growth with slightly weaker performance once calendar effects are considered.
• Exports increased +3.3% QoQ while imports rose only +0.1%, indicating a strong positive contribution from foreign trade driven by goods such as chemicals, pharmaceuticals, and metals.
• Final consumption expenditure rose +0.4% QoQ, with government consumption up +1.1% while household consumption was flat (0.0%), highlighting public spending as the main driver of consumption growth.
• Gross fixed capital formation declined -1.5% QoQ, including machinery and equipment (-1.2%) and construction (-2.5%), indicating a notable pullback in investment, partly linked to weather-related disruptions.
• Gross value added increased +0.1% QoQ, with manufacturing rising +0.7% while construction fell -0.6% and services were broadly flat, pointing to uneven sectoral contributions to growth.
• On a YoY basis, final consumption increased +1.6% (households +0.8%, government +3.5%) while construction investment declined -3.3%, indicating stronger consumption alongside persistent weakness in construction activity.
• Employment declined -0.3% YoY while hours worked rose +0.3% YoY, leaving total labor volume unchanged and indicating offsetting labor market dynamics despite reduced headcount.