German GDP, first quarter 2025

Initial data showed on Wednesday, as the German economy expanded 0.2 % in the first quarter of the previous three months.

The number, issued by the German Federal Statistics Office, is modified for prices, evaluation and seasonal differences.

The total reading of local products was in line with the estimates of economists included in Reuters. Germany’s total contract with 0.2 % in The fourth quarter.

The Statistics Office attributed the quarterly increase to the fact that both the expenditures of the final consumption of the family and the formation of the capital were higher than it was in the previous quarter. “

While recognition of Wednesday’s numbers was positive, the quarterly increase is still very small to end the long -term stagnation in the country. “

It was the largest economy in Europe in a long time, as the gross domestic product of the transition between growth and contraction was every quarter during the years 2023 and 2024. The country has avoided the artistic recession so far, which is defined in two consecutive quarterly.

The main sectors of the economy, such as cars, suffer from stronger competition than China. Other industries, including home construction and infrastructure, pass through difficult times associated with higher costs, silent investment and bureaucratic obstacles.

Separately, US President Donald Trump’s tariff policies have pushed the export -dependent -dependent Germany in Germany and which the United States is the most important commercial partner.

As part of the European Union, Germany faces a 20 % comprehensive tariff for the exported goods to the United States, although these fees temporarily decrease to 10 % to provide time for negotiations. American duties also affect steel, aluminum and cars also on the country.

German government last week Reduce To predict recession in 2025, when Economy Minister Robert Habik said that Trump’s commercial policies and their impact on the country were the main factor behind the review.

One luminous spot can appear on the horizon. Germany earlier this year Make changes To the financial base of absolute debt, allowing high defense spending, and creating a fund 500 billion euros (570 billion dollars) for infrastructure and climate investment.

This step for her It was considered widely As a positive transformation of the German economy, although many still depend on how to implement changes.

“The GDP report today draws a picture of what would have happened if this was not for US President Donald Trump’s explosion – an economy that comes out and passes through a weak periodic recovery, but it may gain momentum with the declared financial motivation,” Brazeski of Eng said.

The analyst said that although this recovery still may happen, the process now will take longer. He stressed that the customs tariff, uncertainty and other transformations in trade and political geography weighing a short -term economic view, while planned financial measures can enhance long -term growth.

Although the economy in Germany was slow, the local inflation rate closes the goal of the European Central Bank of 2 %. The country’s consumer price index, which was coordinated for comparison in the euro area, came 2.3 % in March on an annual basis, a decrease from 2.6 % in February.

The initial inflation numbers for April later on Wednesday, as economists were surveyed by Reuters estimated to read 2.1 %.