Germany Q2 GDP Revised Up to 0.3%

Germany’s Federal Statistical Office revised second-quarter 2026 GDP growth to 0.3% quarter-on-quarter, compared with a previous flash estimate of 0.2%. The latest figures indicate that the economy expanded slightly faster than initially thought, providing an upside surprise to earlier assessments of momentum.

On a year-on-year basis, price-adjusted GDP increased 1.0% in the second quarter of 2026. In addition, growth in the first quarter of 2026 was revised up to 0.4%, suggesting that economic activity in the first half of the year was somewhat stronger than previously reported.

Exports provided the primary boost to output in the second quarter. Combined exports of goods and services rose 2.0% quarter-on-quarter, while exports of goods alone increased 2.6% over the same period. These gains in external demand more than offset weakness in some components of domestic demand.

The strength of exports contrasts with more subdued internal spending and indicates that foreign trade was the key factor behind the upward revision to headline GDP growth. Net external demand played a central role in lifting overall economic activity.

Domestic demand made only a limited contribution to growth. Gross fixed capital formation declined 0.2% quarter-on-quarter, reflecting a downturn in investment. Within this category, investment in machinery and equipment fell 1.4%, highlighting particular softness in business spending on productive assets.

Final consumption expenditure was nearly unchanged, increasing just 0.1% in the quarter. Both household consumption and government consumption expenditure rose 0.1%, indicating only marginal growth in private and public spending despite the improvement in overall GDP.

From the production perspective, the economy showed somewhat stronger dynamics. Gross value added increased 0.4% quarter-on-quarter in the second quarter of 2026, outpacing the overall GDP growth rate. This points to a modest broad-based expansion in output across sectors.

Manufacturing was a notable bright spot, with output up 0.9% quarter-on-quarter. The manufacturing sector’s performance aligns with the strong export figures and underscores the role of industry and foreign demand in supporting Germany’s economic growth during the period.