The German economy demonstrated moderate positive growth in the first quarter of 2026, expanding by 0.3% compared to the previous three-month period. The Federal Statistical Office's report released on Friday fully confirmed previously published preliminary macroeconomic estimates. Year-on-year, gross domestic product in Europe's largest economy grew by 0.5% in the first three months.

The foreign trade sector was the main driver of the significant improvement in the country's key economic indicators at the start of the year. Ruth Brand, Director of the Federal Statistical Office, emphasized that German exports demonstrated an impressive recovery at the beginning of 2026. The total volume of goods and services exported abroad jumped by 3.3%, fully offsetting the decline in exports observed in the fourth quarter of 2025. Meanwhile, import volumes remained flat quarter-on-quarter, increasing by just 0.1%.

Internal development factors, however, showed mixed and less optimistic results. Government spending increased by 1.1% during the reporting period, but private household consumer spending stagnated. The most alarming sign for the real sector was the decline in investment activity: in the first quarter, total investment in the German economy fell by 1.5%, indicating continued caution among businesses amidst overall structural challenges.