german economy — The German economy grew by 0.3 per cent in the fourth quarter of 2025, driven by robust domestic demand and construction investment, ending a tumultuous year on a high note, according to the federal statistics office.
This growth, confirmed by preliminary data, indicates a positive shift following a year marked by economic fluctuations. The adjusted figure for gross domestic product (GDP) reflects price, seasonal, and calendar variations. Overall, the economy registered an annual growth rate of 0.2 per cent, which adjusts to 0.3 per cent when taking the calendar into account.
Ruth Brand, President of the Federal Statistical Office (Destatis), highlighted the significant role of household and government consumption in this growth. She noted, “The positive development was primarily driven by household and government final consumption expenditure.” This suggests that consumer confidence and government spending were vital in stabilising the economy.
Despite challenges throughout the year, including inflationary pressures and shifts in global markets, Germany’s economic resilience has been evident. The construction sector, in particular, played a key role in the recent growth, with increased investments contributing to the overall economic uplift.
The positive indicators from the fourth quarter may provide a foundation for optimistic projections as Germany heads into 2026. Analysts will be watching closely to see if this growth can be sustained and if the underlying factors can continue to support a stable economic environment.
