German economy grows 0.3% in Q1 on stronger exports

Germany’s economy expanded 0.3% in the first quarter of 2026 compared with the previous quarter, driven mainly by a strong rise in exports, the Federal Statistical Office (Destatis) said Friday.

The figure confirmed the preliminary estimate released on April 30.

“Following the slight increase recorded towards the end of 2025, the German economy also began 2026 in positive territory,” Destatis President Ruth Brand said.

“In particular, exports rose considerably at the start of the year, helping Germany's economic performance,” she added.

Exports of goods and services rose 3.3% from the previous quarter, reversing a decline seen in the fourth quarter of 2025, with chemical and pharmaceutical products and metals contributing to the increase.

Imports, meanwhile, edged up 0.1% quarter-on-quarter.

Final consumption expenditure rose 0.4%, supported by a 1.1% increase in government spending, while household consumption was unchanged from the previous quarter.

Gross fixed capital formation fell 1.5%, with investment in machinery and equipment down 1.2% and construction investment dropping 2.5%, partly due to cold weather in January and February.

On an annual basis, GDP expanded 0.4%, exceeding preliminary estimates of 0.3%.

Employment declined sharply, with about 45.6 million people employed in Germany in the first quarter, down 157,000, or 0.3%, from a year earlier.