According to data from the Federal Statistical Office (Destatis), the German economy contracted during the second quarter of 2025, reflected in a 0.3 % drop in Gross Domestic Product.

Among the causes of this contraction are the turbulence in global trade that is affecting domestic economic dynamics, with a less favorable development of industrial production coupled with “the poor order book situation.”

“Furthermore, the worsening labor market outlook and the slowdown in wage growth also played a role, directly affecting private consumption.”

It is important to remember that the European country’s economy has been experiencing a quarterly contraction since 2023 and 2024, which is increasing pressure on Chancellor Friedrich Merz to implement measures to help reactivate the economy.

However, the Bundesbank’s projections are not encouraging, as it anticipates “a course of stagnation for the third quarter” in the face of the Trump administration’s tariffs on the European Union and the increase in public spending, which “exceeded revenues in the first half of 2025.”

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Source: DW

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The Federal Statistical Office published the data on Germany’s gross domestic product for the third quarter of 2024, confirming slower growth than expected.

According to the statistics office, German GDP in this period stood at 0.1 %, which is “a downward revision of 0.1 points compared to the first estimate.”

Compared to the same period in 2023, the contraction of Germany’s economy was 0.3 percent. On the other hand, during the second quarter of this year, German GDP “had contracted by 0.3 % after having grown by 0.2 percent in the first quarter.”

Analysts believe that a crucial factor in the weak growth for the third quarter was private consumption, which increased by 0.3 %. On the other hand, government spending also rose by 0.4 %.

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Source: DW

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Germany’s Federal Statistical Office (Destatis) confirmed the 0.1 % contraction of Gross Domestic Product in the second quarter of 2024.

Ruth Brand, president of Destatis, noted that this contraction comes after a slight increase of 0.2 % in the previous quarter.

Analysts, including the Federal Bank, point out that despite having avoided recession, Europe’s largest economy has not managed to maintain economic expansion.

In a context marked by the high cost of energy, “the rise in credit costs, weak domestic demand and difficulties in international trade,” the German export industry has not been able to take off and give the country a boost.

However, despite the weakness in sectors such as constriction and lack of labor, the Bundesbank remains confident in a slight expansion until September.

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With information from international media

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The inflation rate fell significantly in Germany in May to 6.1 %, the lowest level in more than a year, the Federal Statistical Office (Destatis) reported today based on preliminary data.

The increase in consumer prices thus lost pace for the third consecutive month. The last time the annual inflation rate in Germany was lower was in March 2022, when it stood at 5.9 %.

Inflation has exceeded 8.0 % since August 2022, and it was not until March of this year that it fell below this figure, that is, 7.4 %. For April, Destatis calculated a rate of 7.2 % and from April to May 2023, consumer prices fell 0.1 %, according to the calculations.

The high rate of inflation has been weighing down consumers for months, whose purchasing power is reduced. In surveys, many people say they can barely make ends meet on their money.

Food prices rose 14.9 % annualized in May, compared to an increase of 17.2 % in April and 22.3 % in March.

The upward trend in energy prices also weakened: in May 2023, energy was 2.6 % more expensive compared to May 2022, compared to 6.8 % in April.

The federal government has taken steps to try to alleviate the situation with caps on the prices of natural gas, electricity and district heating.

The introduction of the monthly public transport pass for bus and train “Deutschlandticket” from 1 May also took effect. Inflation reports from the federal states indicated that many people spent less on commuting and other travel.

The European Central Bank (ECB) is also trying to curb inflation with higher interest rates. After seven consecutive increases, the main interest rate of the 20-country monetary area now stands at 3.75 %, and further increases are expected. However, according to economists, the still high inflation in Germany and in the Eurozone as a whole will not disappear quickly.

Source: dpa

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Electricity generation in Germany registered a change in the first half of the year, with a greater share of coal and renewable resources and a decline in gas, the Federal Statistical Office reported today.

Nearly a third of the electricity generated in the first half came from coal-fired power plants, whose share grew 4.3 percentage points to 31.4 percent of the total.

The entity, based in the city of Wiesbaden, specified that wind and photovoltaic energy also registered a significant increase as a source of electricity production, going from 43.8 percent in the first half of 2021 to a 48.5 percent in the first six months of this year.

The generation of electricity from gas, which is more expensive than in other times, fell 2.7 points to reach a share of 11.7 percent, said the Federal Statistics Office.

Due to the closure of three nuclear power plants, the share of nuclear energy production was only 6.0 percent, after representing 12.4 percent in the same period last year.

The amount of electricity produced in Germany and fed into the grid overall rose 1.3 percent to 263.2 billion kilowatt-hours for the year.

Once again, much more electricity was exported than imported. For the first time since statistics began in 1990, Germany also exported more electricity to France than it imported the other way.

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Source: dpa

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