Europe’s Largest Economy Returns to Growth After Two Years of Contraction

Germany's gross domestic product grew by 0.2 percent in 2025, matching the government's forecast, according to data released by Destatis, the country's national statistical office. Quarterly and Annual Performance In the fourth quarter alone, the economy expanded by 0.3 percent compared with the third quarter and by 0.4 percent on an annual basis. In the previous two years, Germany's economy contracted by 0.9 percent in 2023 and 0.5 percent in 2024, suggesting that the country has begun a gradual recovery from its downturn. The positive dynamics in 2025 were driven primarily by final household consumption expenditures, government spending, and gross capital formation in construction.