Headlines

German economy grew by 0.2% in first quarter, skirting recession

Published by Global Banking & Finance Review

Posted on April 30, 2025

1 min read

· Last updated: January 24, 2026

Add as preferred source on Google
German economy grew by 0.2% in first quarter, skirting recession
Global Banking & Finance Awards 2026 — Call for Entries

BERLIN (Reuters) -Germany's gross domestic product rose in line with forecasts, by 0.2%, in the first quarter of 2025 compared with the previous three-month period, preliminary data from the

German Economy Sees 0.2% Growth in Q1, Avoids Recession

By Maria Martinez

BERLIN (Reuters) -The German economy grew in the first quarter of the year thanks to consumption and investment, escaping a recession after contracting in the last quarter of last year, data showed on Wednesday.

Gross domestic product rose in line with forecasts, by 0.2%, compared with the previous three-month period, preliminary data from the statistics office showed.

Germany had contracted in the final quarter of last year by 0.2%, reigniting recession fears. A recession is defined as two consecutive quarters of negative growth.

Germany was the only member of the Group of Seven advanced economies that failed to grow for the last two years, and the tariffs announced by U.S. President Donald Trump will deal a major blow - possibly putting it on track for a third year of recession for the first time in post-war German history.

(Reporting by Rachel More and Maria Martinez, editing by Kirsti Knolle and Matthias Williams)

Key Takeaways

  • German economy grew by 0.2% in Q1.
  • Avoided recession after last quarter's contraction.
  • Growth driven by consumption and investment.
  • Germany was the only G7 economy not to grow in the last two years.
  • US tariffs could impact future growth.

Frequently Asked Questions

What is the main topic?
The article discusses the 0.2% growth of the German economy in the first quarter, avoiding a recession.
What drove the economic growth?
The growth was driven by increased consumption and investment in Germany.
What are the potential risks to Germany's economy?
US tariffs announced by President Trump could negatively impact Germany's economic growth.

Related Articles

More from Headlines

Explore more articles in the Headlines category