Business · Economy · 11 hrs ago
Germany’s economy grows 0.2% in third quarter, beating expectations
Germany’s economy grew 0.2% in the third quarter, according to preliminary figures from the Federal Statistical Office.
The increase came despite pressure from the Iran war and low water levels that disrupted shipping on the Rhine and affected industries including chemicals and steel.
Growth was driven by a slight rise in household spending, while investment fell and exports weakened.
Inflation fell to 2.8% in October from 3.3% in September, helped by a temporary fuel-price discount.
But energy costs were still much higher than a year earlier, and economists expect those increases to feed into prices for other goods and services.
The figures add to hopes that Germany, Europe’s largest economy, is emerging from several weak years, after growth of just 0.2% in 2025 and contractions in the two years before that.
The German government now expects the economy to grow 1.3% this year, while the Ifo Institute forecasts 1.4%; economists say the recovery still needs to prove it can last.
Germany’s economy grew 0.2% in the third quarter of 2026 compared with the previous quarter, according to preliminary data.
The result was above analysts’ expectations of 0.1% growth, reported Asharq Al-Awsat.
It marked the fourth consecutive quarter of growth for Europe’s largest economy.
Household consumption and government spending rose slightly, while investment fell and export growth slowed.
Economists warned that the recovery may be fragile and that stronger investment is needed to sustain growth.
- Who
- Germany’s economy, as measured by the country’s gross domestic product.
- What
- It grew 0.2% in the third quarter compared with the previous quarter.
- When
- The third quarter of 2026, covering July to September; the preliminary figures were reported on October 30, 2026.
- Where
- Germany.
- Why
- Household consumption and government spending rose slightly. The sources also report that government spending on infrastructure and defence supported the recovery.
This story does not have two clearly opposing sides.
Germany’s economy grew 0.4% compared with the previous quarter.
Germany’s economy grew 0.3% compared with the previous quarter.
Germany’s economy grew 0.2% compared with the previous quarter, according to preliminary data.
Germany’s Ifo business climate index rose for the sixth consecutive month, according to Asharq Al-Awsat.
- Quarterly growth
- 0.2% in the third quarter of 2026
- Analysts’ expectation
- 0.1% quarterly growth, according to Asharq Al-Awsat
- Annual growth
- 1.3% compared with the third quarter of 2025, after adjusting for price changes
- Household consumption
- Rose slightly in the third quarter
- Investment
- Fell in the third quarter
- Government forecast
- 1.3% growth for 2026
4 sources
What people are saying
Without this artificial push launched by the government, economic output would probably have stagnated.
To achieve higher and sustainable growth, investment would have to increase much more, which has not happened so far.
Private consumption was the growth driver in the summer quarter. Higher energy prices have not spoiled households’ willingness to spend.