German Economy Maintains Momentum: Growth for Third Consecutive Quarter

Despite numerous crises, Germany’s economy is showing resilience and continues to send positive signals.

According to data from the Federal Statistical Office, gross domestic product (GDP) expanded by 0.3 percent in the second quarter of 2026 compared with the previous three months. The figure was 0.1 percentage points higher than the initial estimate.

This marks the third consecutive quarter of growth for Europe’s largest economy, strengthening hopes of a long-awaited recovery. Ruth Brand, president of the Federal Statistical Office, said the expansion was driven primarily by exports.

During the second quarter, German exports of goods and services rose by 2 percent compared with the first quarter of the year. Meanwhile, private and public consumption each increased by just 0.1 percent, while investment in machinery and vehicles declined.

“Considering the partly very gloomy forecasts for the economic situation due to the war between Iran and Israel, the growth of the German economy is surprisingly resilient,” said Thomas Gitzel, chief economist at VP Bank in Liechtenstein.

According to Gitzel, Germany’s economic outlook remains relatively positive. He also attributed this to healthy order levels in the manufacturing industry.

However, experts say public finances remain a major concern. In the first six months of the year, the German government spent 71.3 billion euros more than it collected.