Germany's Q1 2025 GDP grows 0.4% QoQ, exceeds initial estimate

Economic growth in Q1 2025 was, therefore, 0.2 percentage points (pp) higher than communicated in the first release of April 30 this year.

"Growth was slightly higher than predicted in the first estimate due to the surprisingly good economic development seen in March," said Destatis president Ruth Brand in an official release.

"In particular, output in manufacturing and exports registered stronger growth than initially assumed," Brand added.

The last time GDP growth was higher than the level registered in the Q1 2025 was in the Q3 2022 (plus 0.6 per cent QoQ).

On a price, calendar and seasonally adjusted basis, total exports of goods and services rose by 3.2 per cent QoQ in Q1 2025; these were down by a price-adjusted 1.1 per cent YoY in the quarter. Anticipatory effects amid concerns over a brewing trade war with the United States are likely to have contributed to the positive QoQ development. Exports of goods declined by 1.4 per cent YoY in the quarter.

Imports also rose at the start of the year, but at 1.1 per cent, the growth in imports was weaker than that in exports.

After registering a decline for four consecutive quarters, Germany’s gross value added (GVA) on the whole was up 0.6 per cent in Q1 2025 compared with Q4 2024, following adjustment for price, seasonal and calendar variations.

Economic performance was up in the manufacturing industry by 1 per cent, following declines in the previous quarters.

GDP in Q1 2025 was down a price-adjusted 0.2 per cent year on year (YoY). After adjustment for price and calendar effects, it stagnated compared with the same quarter of the previous year.

Investments fell by 1 per cent YoY in Q1 2025 after adjustment for price variations.

Compared with other countries, Germany’s economic performance at the start of the year was slightly above the European average: in Q1 2025, economic performance in the European Union (EU) as a whole increased by 0.3 per cent QoQ and was slightly below Germany's 0.4 per cent growth.

ALCHEMPro News Desk (DS)