German economy posts modest 0.3% growth in final quarter of 2025
Germany’s economy grew by 0.3% in the fourth quarter of 2025 compared with the previous quarter, according to the federal statistics office Destatis. The increase was slightly above market expectations, which had forecast 0.2% growth.
The quarterly expansion was driven primarily by higher household and government consumption. After a stagnant third quarter, the German economy ended the year on a positive note despite ongoing challenges in foreign trade and global economic uncertainties.
On an annual basis, GDP rose by 0.4% in the final quarter. For the full year 2025, Germany’s economy expanded by 0.2% compared with 2024, following a contraction of 0.9% in 2022 and moderate growth of 0.5% in 2023 and 2024. Analysts highlight that these figures reflect slow but steady recovery amid a turbulent economic environment.
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