German Economy Defies Slump with Unexpected Second Quarter Growth

German gross domestic product edged up by 0.2% during the second quarter, a figure that caught analysts off guard. While experts had penciled in a modest 0.1% increase, the national statistics office reported a more resilient performance, bolstered by a surge in export activity that offset broader domestic stagnation.

Editorial·July 30, 2026·reads: 331

German Economy Defies Slump with Unexpected Second Quarter Growth

This expansion arrives despite a cooling effect from sluggish household spending and a notable decline in capital investment compared to the start of the year. The latest data release also brought a significant upward revision for the first quarter, which saw growth climb to 0.4%—a stronger start to 2024 than earlier estimates suggested. The reliance on external trade highlights a delicate recovery for Europe’s largest economy, which continues to navigate muted internal demand and tightening industrial output.