Germany Economy Grows 0.4% in Q1, Doubling Earlier Estimates

Germany's economy expanded by 0.4% in the first quarter of 2025, double the initially estimated growth of 0.2%, signaling a stronger-than-expected economic recovery. This growth was driven primarily by robust private consumption, which rose 0.5%, and a surge in trade, particularly exports that increased significantly due to U.S. importers accelerating purchases ahead of anticipated tariff changes. Manufacturing output also showed stronger growth in March, contributing to the upward revision of the GDP figures. Despite political uncertainties and fiscal challenges, these developments suggest growing optimism for Germany's economic prospects in 2025. The net trade contributed positively to GDP growth, offsetting some drag from inventory changes. The revised figures highlight a surprisingly positive economic trend at the start of the year, underscoring the resilience of the German economy amid ongoing global uncertainties.