Germany's economy grew by 0.3% in the first quarter of 2026 compared with the previous quarter, according to official statistics released in May [1, 2]. Exports of goods and services rose sharply by 3.3% quarter-on-quarter, reversing a decline seen in the last quarter of 2025 and acting as the main driver of growth [1, 2]. Imports increased slightly by 0.1% over the same period [1, 2].
Government spending also contributed, rising by 1.1% in Q1 2026, while household consumption remained flat, showing no growth quarter-on-quarter [1, 2]. Investment fell by 1.5%, with machinery and equipment down 1.2% and construction investment dropping 2.5% [1, 2]. The decline in construction investment was partly due to cold weather in January and February, which hampered activity at the start of the year [2].
Employment in Germany fell sharply by 157,000 people or 0.3% year-on-year to about 45.6 million in Q1 2026 [2]. Despite this, annual GDP growth exceeded preliminary estimates, reaching 0.4% instead of the initially reported 0.3% in late April [2].
Ruth Brand, President of the Federal Statistical Office (Destatis), said, "Following the slight increase recorded towards the end of 2025, the German economy also began 2026 in positive territory. In particular, exports rose considerably at the start of the year, helping Germany's economic performance." [2]
The official confirmation of the Q1 growth figures came on May 22, following preliminary estimates released on April 30 [2]. Economic analysts will next look to the Q2 results for signs of sustained momentum after the mixed performance in household consumption and investment sectors.
