The gross domestic product of Germany increased in the first quarter of 2025 by 0.4 percent. – said the German Federal Statistical Office on Friday (23.05.2025). Earlier statistics estimates provided for an GDP increase of 0.2 percent. The reason for the upper correction is “unexpectedly good economic situation in March”, it was announced.
“First of all, production in the manufacturing sector, as well as exports, developed better than initially assumed,” explained Ruth Brand, president of the Statistical Office. Export increased by 3.2 percent compared to the fourth quarter of 2024.
Statistics pointed to a particularly strong increase in the export of pharmaceutical products and automotive industry products. “These are important export goods for the American market,” they pointed out. It can therefore be assumed that “a smoldering commercial conflict with the US” contributed to the positive development of the situation because American importers accelerated shopping in anticipation of high duties.
A short -term effect?
At the same time, private consumer expenditure and investments, for example in buildings and equipment, also increased stronger than in previous quarters. After four subsequent declines, the gross added value was 0.6 percent. higher than in the previous quarter.
“Both the construction industry (an increase of 0.9 percent) and the production industry (an increase of 1.0 percent) were able to increase their economic production after declines in previous quarters,” the statistical office said. He also pointed to positive changes in the chemical industry, mechanical engineering and the automotive industry.
Some economists warn against too much optimism, because reflection does not have to be permanent. Both the German government and the leading economic institute have just reduced their German GDP growth forecasts to zero.