‘Surprisingly good March’ helps German GDP exceed expectations

Published on 23/05/2025 - 12:40 GMT+2

The German system grew by a astonishing gait of 0.4% successful nan first quarter, according to revised information from nan German statistic office. That was double nan maturation initially estimated.

The Federal Statistical Office had reported astatine nan extremity of past period that nan system expanded by 0.2% successful nan January-March play compared pinch nan erstwhile quarter. The caput of nan office, Ruth Brandt, said that "the amazingly bully economical improvement seen successful March" led to nan revision.

The past clip Germany saw stronger maturation was successful nan 3rd 4th of 2022, erstwhile gross home merchandise expanded by 0.6%. Germany has struggled to make important maturation for years, and nan system shrank successful each of nan past 2 years. In past year's 4th quarter, it contracted by 0.2%.

In its first forecast since caller Chancellor Friedrich Merz's authorities took agency earlier this month, nan government's sheet of independent economical advisers predicted connected Wednesday that GDP will stagnate this twelvemonth and turn by 1% adjacent year.

It pointed to headwinds from US President Donald Trump's tariffs and waste and acquisition threats, but said a immense infrastructure finance package put together by Merz's conjugation offers opportunities for betterment adjacent year.

Carsten Brzeski, world main of macro astatine ING bank, said nan improved first-quarter showing looks group to beryllium "a affirmative one-off" astatine slightest successful nan short term, fuelled by businesses trying to get up of Trump's tariffs.

"As a consequence of nan announced tariffs and successful anticipation of 'Liberation Day,' German business accumulation and exports surged successful March," Brzeski said successful a investigation note.