Germany’s gross domestic product has fallen by 0.3% in the second quarter of 2025 compared with the first, showing Europe’s largest economy losing momentum.
The Federal Statistical Office said the decline was 0.2 points steeper than in its flash estimate from July 30, with weaker-than-expected industrial production driving the revision. GDP had grown 0.3% in the first quarter and 0.2% in the last quarter of 2024.
Data showed that both manufacturing and construction output in June deteriorated more than first assumed. Private consumption was revised down after service-sector statistics, including hospitality figures, pointed to weaker demand.
Exports of goods and services edged 0.1% lower, weighed by a 0.6% decline in goods exports, while service exports rose 1.4%. Imports rose a strong 1.6%.
Gross value added across the economy fell 0.2%. Construction slumped 3.7%, manufacturing dropped 0.3%, and trade, transport, and hospitality declined 0.6%. By contrast, information and communications and business services each grew 0.5%, but public services, education, and health flatlined.
Germany has been the only G7 economy to stagnate for the past two years and now faces the prospect of a third straight year of contraction, which would be a first in the country’s postwar history.
Reviving growth has become a top priority for the new government as trade tensions mount. US President Donald Trump imposed a baseline tariff of 10% on April 5, raising fears of further damage to Germany’s export-driven economy.
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