What were the main drivers of Germany's 0.3% GDP growth in the first quarter of 2026, according to the statistics office?

According to the statistics office, Germany's 0.3% GDP growth in the first quarter of 2026 was driven primarily by a surge in foreign trade—especially exports—and higher government spending, which offset flat consumer demand and a drop in investment.

Why has Germany halved its 2026 growth forecast, and what immediate economic risks are cited in the article?

Germany halved its 2026 growth forecast to 0.5% due to the impact of the Iran war, which has kept the Strait of Hormuz shut and energy prices high; the Bundesbank now projects stagnation for the current quarter, and S&P Global has raised the prospect of contraction after its May business survey showed activity shrinking for a second straight month.

Germany’s Exporters Helped Drive First-Quarter Growth Spurt

May 21, 2026

Germany's Q1 GDP grew 0.3% driven by exports, though energy prices remain high due to Middle East tensions. Major industrial firms like Thyssenkrupp and Siemens adjusted forecasts amidst economic uncertainty.

bloomberg

2026-05-21

Germany’s Exporters Helped Drive First-Quarter Growth Spurt

2026-06-16

Germany Mulls Backing Wind Platform to Counter China Competition

Germany’s Exporters Helped Drive First-Quarter Growth Spurt

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