Initial Estimate Confirmed: German Economy Stagnated in Third Quarter - Germany’s economy stalls as GDP growth grinds to a halt in Q3
Germany’s economy showed no growth in the third quarter, with GDP remaining flat compared to the previous three months. The country narrowly avoided a technical recession, as output did not fall for a second consecutive quarter. However, weak exports and stagnant consumption weighed on overall performance.
The latest figures reveal a mixed picture for the German economy. While GDP held steady, private household spending dropped for the first time since late 2023. Overall consumption remained unchanged, reflecting cautious spending by both businesses and individuals.
Germany’s economy remains in a delicate position, with weak exports and flat consumption limiting expansion. The slight rise in equipment investment and higher government spending were not enough to offset broader stagnation. Analysts will now watch closely to see whether the final quarter brings any improvement.
