Germany's GDP drops 0.3% QoQ in Q2 2025 after adjustments

The decline in economic performance was, therefore, 0.2 percentage point (pp) greater than communicated on July 30.

After price adjustment, GDP in Q2 2025 was 0.2 per cent lower year on year (YoY).

Industrial production, in particular, performed worse than initially assumed.

GDP grew by 0.3 per cent QoQ in Q1 2025 and 0.2 per cent QoQ in Q4 2024.

The country’s final consumption expenditure in Q2 2025 was up by 0.3 per cent QoQ after price, seasonal and calendar adjustment. Here, household consumption only registered a marginal increase of 0.1 per cent QoQ, which was, therefore, lower than anticipated in July end. Government final consumption expenditure increased by 0.8 per cent QoQ.

After price, seasonal and calendar adjustment, gross fixed capital formation decreased by 1.4 per cent QoQ in Q2 2025 after registering a slight increase at the start of the year.

No positive contributions came from foreign trade either. In Q2 2025, total exports of goods and services were down by 0.1 per cent QoQ after price, seasonal and calendar adjustment. This was due to a drop in exports of goods (minus 0.6 per cent), while exports of services rose by 1.4 per cent.

Price-adjusted exports declined substantially by 2.4 per cent YoY in Q2 2025. Exports of goods decreased significantly by 3.6 per cent YoY.

Imports of goods and services rose by 1.6 per cent QoQ in Q2 2025.

Gross value added in Q2 2025 decreased by 0.2 per cent QoQ after adjustment for price, seasonal and calendar variations.

Following significant growth in Q1 2025, the manufacturing sector also had to suffer a setback in Q2. Economic output fell by 0.3 per cent QoQ and was, therefore, also lower than assumed in the first provisional figures released on 30 July.

Production was down in almost every sector of manufacturing, with only the manufacture of motor vehicles, trailers and semi-trailers and the manufacture of other transport equipment registering slight growth on the previous quarter.

Persistent YoY declines were registered in employment in manufacturing and construction in Q2 2025.

ALCHEMPro News Desk (DS)