German economy returns to growth after two-year contraction
The German economy grew by 0.2% in the final quarter of 2025, marking a 0.2% increase for the full year, according to the Federal Statistics Office.
"After two years of recession, the German economy edged back into growth. The growth is primarily attributable to increased household consumption and government expenditure", said Ruth Brand, President of the Federal Statistical Office, at the press conference, News.Az reports, citing Reuters.
Household consumption increased by a price adjusted 1.4 %. With price adjusted growth of 1.5%, government spending slightly exceeded the growth of household consumption, the statistics office said.
However, investment was down 0.5% compared with the previous year. "The substantial growth in general government investment spending, particularly on defence, did not offset the decline in investment in machinery and equipment," the office said, as there was a 2.3% drop year-on-year.
General government budgets recorded a financial deficit of roughly 107 billion euros ($124.44 billion) at the end of 2025, according to provisional calculations.
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