Headlines
German economy grew by 0.2% in first quarter, skirting recession
Published by Global Banking & Finance Review®
Posted on April 30, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 30, 2025
1 min readLast updated: January 24, 2026
Germany's economy grew by 0.2% in Q1, avoiding a recession due to increased consumption and investment, following a contraction in the previous quarter.
By Maria Martinez
BERLIN (Reuters) -The German economy grew in the first quarter of the year thanks to consumption and investment, escaping a recession after contracting in the last quarter of last year, data showed on Wednesday.
Gross domestic product rose in line with forecasts, by 0.2%, compared with the previous three-month period, preliminary data from the statistics office showed.
Germany had contracted in the final quarter of last year by 0.2%, reigniting recession fears. A recession is defined as two consecutive quarters of negative growth.
Germany was the only member of the Group of Seven advanced economies that failed to grow for the last two years, and the tariffs announced by U.S. President Donald Trump will deal a major blow - possibly putting it on track for a third year of recession for the first time in post-war German history.
(Reporting by Rachel More and Maria Martinez, editing by Kirsti Knolle and Matthias Williams)
The article discusses the 0.2% growth of the German economy in the first quarter, avoiding a recession.
The growth was driven by increased consumption and investment in Germany.
US tariffs announced by President Trump could negatively impact Germany's economic growth.
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