According to official figures released on Thursday, Germany’s economy grew by 0.2 percent in 2025, resuming growth after two years of recession, despite obstacles including the US tariff blitz and weak demand in China.
According to a statement from Ruth Brand, head of the statistics office Destatis, the government’s and private households’ increased expenditure was the primary cause of the growth.
But because of a drop in exports, the largest economy in Europe continued to do poorly, she said. “Germany’s export business faced strong headwinds owing to higher US tariffs, the appreciation of the euro and increased competition from China,” Brand said.
Investment also remained weak last year, and fell in the construction and machinery manufacturing industries, according to the provisional data released by Destatis.
For the final quarter of 2025, the agency estimated that the economy grew 0.2 percent from the third quarter.
Battered by an energy shock triggered by the Ukraine war, a manufacturing slump, US tariffs and weakening demand in the key Chinese market, the world’s third-biggest economy shrank in both 2023 and 2024.
A return to growth could offer some relief to Chancellor Friedrich Merz, who took power last May vowing to revive the economy but has faced mounting criticism that efforts are moving too slowly.
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