Germany's economy grew 0.2 percent in 2025, adjusted for inflation, according to preliminary data released Thursday by the Federal Statistical Office (Destatis), ending two consecutive years of recession.
"The German economy edged back into growth," Destatis President Ruth Brand said at a press conference in Berlin, attributing the modest expansion mainly to stronger household and government consumption.
However, she noted that the 0.2 percent growth rate remains low among major economies and that Germany's economic growth momentum is still insufficient.
Destatis figures showed German exports fell by 0.3 percent in 2025, marking a third consecutive annual decline, amid falling shipments of cars, machinery and chemical products. Brand cited strong headwinds for exporters, including U.S. tariffs and a stronger euro.
"Export-oriented industries are facing difficulties, primarily due to relatively high labor and energy costs. The manufacturing sector faced even greater challenges in 2025, with increased U.S. tariffs and the appreciation of the euro against major trading partners' currencies leading to a decline in the price competitiveness of German exports in major international markets," said Brand.
Data showed that gross value added in manufacturing fell by 1.3 percent in 2025, marking a third straight year of decline. The automobile and machinery manufacturing industries saw significant declines. Economic activity in the chemical and other energy-intensive sectors was also lower than in previous years.
German economy grows 0.2 pct in 2025, ending two years of contraction
German economy grows 0.2 pct in 2025, ending two years of contraction
