Germany's Q2 economic growth surpasses initial estimate on exports

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August 25, 2026 2:06 AM EDT

FILE PHOTO: A worker assembles axial-flux motors for electric vehicles on an assembly line at the Mercedes-Benz engine factory in Berlin, Germany June 9, 2026. REUTERS/Axel Schmidt/File Photo

BERLIN, Aug 25 (Reuters) - ‌The German ​economy ​grew by 0.3% in the second quarter of 2026 compared with the previous ‌quarter, slightly above last month's preliminary reading of ⁠0.2% as exports perked up.

The statistics office's data on ‌Tuesday further firms up ‌tentative signs of a recovery in Germany's languishing economy.

A widely followed gauge of investor morale rose ​more than expected last week amid improved company earnings and export orders.

Further evidence of an ⁠economic turnaround would be positive for Chancellor Friedrich Merz, who has ​been sliding in opinion polls and who faces state elections next month that could propel ​the far-right AfD to power ‌at regional level.

Higher oil and natural gas prices as a result of the ⁠Iran war had hampered a long-awaited recovery in Europe's largest economy. The economy ministry in April slashed its ⁠2026 growth forecast to 0.5% from a previous estimate of ​1%.

The ministry said earlier this month that positive momentum was emerging with energy-intensive German manufacturers gaining an edge over ‌Asian rivals who were hit even harder by the Iran war's ripple ‌effects.

The statistics office cited improvements in exports as ⁠well as in wholesale ‌and retail trading ​as reasons behind its revision.

(Reporting by Ludwig Burger, editing by Friederike Heine and Louise ‌Heavens)


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