Wunderbar, say the German economic figures
Summary
- German economic growth in Q2 was revised to 0.3%, exceeding the preliminary estimate of 0.2% and continuing the solid growth from the beginning of the year.
- The unexpected growth occurred despite concerns over the energy shock in the Strait of Hormuz, which had led the Ministry of Finance to halve its economic estimate for the current year to 0.5%.
- Foreign trade, particularly exports, was the primary driver of growth, with a 2.0% increase in Q2, while household consumption grew by only 0.1%.
- Business sentiment has improved, as indicated by the rise in the Ifo index, reflecting better assessments of the current situation and future expectations.
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Automatic translation: Originally published in Finnish 26/08/2026, 04:36 GMT. Give feedback here.
German economic growth in Q2 was stronger than expected, and the economic figures are improving in other respects as well. Quite wunderbar, even though there is still room for improvement.
According to revised figures, German economic growth reached 0.3% in Q2 compared to the previous quarter. The preliminary figure was 0.2%, so the actual outcome continued the respectable reading of the early year (0.4%). The improved growth has come as a surprise, as the energy shock in the Strait of Hormuz was expected to hit the German economy in particular. For this reason, the country's Ministry of Finance halved its economic estimate for the current year in April to 0.5% from the previous 1.0%. Now it looks once again as though there could even be room for upward revisions to the estimates.
The sources of growth are also surprising. Last year, there was a lot of talk about increases in public spending in Germany, but its contribution to the economy has remained minor so far. Instead, foreign trade is performing well, with exports growing by 2.0% in Q2 compared to the previous quarter. Household consumption, on the other hand, grew by a modest 0.1%. If domestic demand can also be put on a better footing, the growth outlook would brighten further. Sentiment among companies has improved, as the Ifo index has seen an increase in both assessments of the current situation and expectations.
Germany: Ifo indices
Source: LSEG
