German Economy Expands 0.3% in Q2 as Ifo Climate Index Jumps to 88.8
Updated
Updated · Euronews · Aug 25
German Economy Expands 0.3% in Q2 as Ifo Climate Index Jumps to 88.8
3 articles · Updated · Euronews · Aug 25
Summary
Germany revised second-quarter GDP growth up to 0.3% from 0.2%, with annual growth lifted to 1.0%, signaling the economy held up better than expected through the Iran-war energy shock.
Exports drove the upgrade, rising 2.0% quarter on quarter versus 1.5% import growth, while manufacturing output increased 0.9%, led by chemicals and electrical equipment.
Domestic demand stayed weak: household and government consumption each edged up 0.1%, investment slipped, and machinery-and-equipment spending fell 1.4%; financial and insurance services also contracted 0.7%.
The Ifo business climate index rose to 88.8 in August from 86.7, beating the 87.2 forecast and improving across every major sector, adding to evidence of a recovery.
High energy prices and weak home demand still cloud the outlook, with Berlin now forecasting just 0.5% growth in 2026 after cutting its previous 1.0% estimate.