The German economy is booming unexpectedly: 0.4 percent growth in GDP!

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German economy on the rise: GDP grows by 0.4% in Q1 2025, led by higher exports and consumption. Analyzes and outlooks.

Deutsche Wirtschaft im Aufwind: BIP wächst um 0,4 % im Q1 2025, angeführt von höheren Exporten und Konsum. Analysen und Ausblicke.
German economy on the rise: GDP grows by 0.4% in Q1 2025, led by higher exports and consumption. Analyzes and outlooks.

The German economy is booming unexpectedly: 0.4 percent growth in GDP!

Today, May 23, 2025, the German economy reports unexpected growth in the first quarter. Loud Economy TV Gross domestic product (GDP) increased by 0.4 percent compared to the previous quarter. This represents a positive deviation from the original forecast, which envisaged an increase of just 0.2 percentage points.

The main reasons for this growth are increased exports, especially in the areas of cars and medicines, as well as increased consumer spending. Experts such as Jens-Oliver Niklasch from LBBW expressed surprise at the revision of the growth figures, which underpins the optimism in economic development.

Detailed growth figures

The from Federal Statistical Office Published data show that GDP in the first quarter of 2025 increased by 0.4% quarter on quarter (price, seasonally and calendar adjusted), but fell by -0.2% year on year. Compared to the previous quarter, exports increased by 3.2%, while imports increased by 1.1%.

Private consumer spending also grew by 0.5% compared to the previous quarter. Nevertheless, a decline in government consumption expenditure of 0.3% was recorded. In addition, gross fixed capital formation increased by 0.9%. In general, gross value added increased by 0.6% in the first quarter, which represents a positive development for the German economy.

International comparisons and outlook

In an international comparison, Germany shows growth of 0.4% in the first quarter of 2025, above the EU average of 0.3%. Particularly noteworthy is Spain, which leads the way with growth of 0.6%. However, uncertainty remains about the future economic situation as there are numerous global challenges.

Commerzbank has slightly raised its forecasts for the full year. However, analysts are raising concerns about whether the positive trend is sustainable given ongoing risks in the global economy.

Overall, Germany's economic development, which has been stagnating since the last stronger GDP growth in the third quarter of 2022 (+0.6%), is showing the first signs of recovery. The course of the next few months remains crucial to determine whether this upward trend continues.