Election of the German-Iranian Chamber of Industry and Commerce to the Council of ICC Iran
17.02.2026Germany’s Economy Returns to Growth After Two Years of Recession
Preliminary data indicate that Germany’s gross domestic product (GDP) increased by 0.2% in 2025 compared to the previous year. This growth follows two consecutive years of economic contraction and signals the gradual beginning of a broader recovery in the country’s overall economic conditions.
According to the initial estimate released by the Federal Statistical Office of Germany (Destatis), real GDP (price-adjusted) in 2025 rose by approximately 0.2% compared to 2024. After calendar adjustment, growth reached 0.3%. The expansion was primarily driven by higher household and government final consumption expenditure, while investment and foreign trade remained comparatively weak. Although the modest GDP growth marks the first positive reading after two negative years and suggests a return to a growth trajectory, significant challenges persist, including subdued investment, declining industrial output, and uncertain external trade conditions.
According to the published data, the performance of various economic sectors in Germany in 2025 was mixed:
Manufacturing industries: Real gross value added decreased by 1.3%
Construction: Gross value added declined by 3.6%
Business services: Decreased by 0.8%
Other services: Decreased by 0.3%
Trade, transport, hotels and restaurants: Gross value added increased by 1.2%
Public services, education and health: Gross value added increased by 1.4%
Household final consumption expenditure: Increased by 1.4%
Government final consumption expenditure: Increased by 1.5%
Total investment: Decreased by 0.5%
Investment in construction: Decreased by 0.9%
Investment in machinery and equipment: Decreased by 2.3%
Germany’s 2025 foreign trade statistics indicate a slight decline in exports alongside a rise in imports:
Total exports (price-adjusted): Decreased by 0.3%
Goods exports alone: Decreased by 0.7%
Total imports: Increased by 3.6%
Goods imports: Increased by 5.1%
