FX.co ★ Germany Q2 GDP Growth Revised Up

Germany’s economy grew by 0.3% in Q2 2026, slightly above the preliminary estimate of 0.2% but slower than the 0.4% expansion recorded in the previous quarter. Ruth Brand, president of the Federal Statistical Office, noted that the economy broadly maintained the growth momentum seen at the start of 2026, with exports continuing to serve as the main engine of expansion.

Exports increased by 2.0% in Q2, following a 2.4% rise in Q1, and once again outpaced imports, which grew by 1.5% after a 0.5% increase in the prior quarter. Domestic demand staged only a mild recovery, edging up 0.1% after contracting by 0.3% in Q1. Both household and government consumption rose by 0.1%, compared with a 0.6% decline in household spending and a 0.9% increase in government consumption in the first quarter.

Gross fixed capital formation fell by 0.2%, though this was a marked improvement from the 1.3% decline in Q1. The drag continued to come from investment in machinery and equipment, which slipped by 1.4% after a 1.7% drop previously, while construction investment posted a slight 0.1% gain, reversing a 1.8% fall in the prior quarter.

On a year-on-year basis, GDP grew by 1.0% in Q2 2026, picking up from a 0.7% expansion in the first quarter.