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German economy stagnates in the third quarter

These figures, adjusted for prices, seasonality, and the calendar, were released after Germany’s GDP decreased by 0.2% from April to June and grew by 0.3% from January to March, the German federal statistics agency Destatis announced in a statement.

Preliminary data revealed positive growth in equipment investments during the third quarter.

Conversely, German exports declined compared to the previous quarter, as noted by Destatis.

Compared to the same quarter of the previous year, Germany’s GDP was 0.3% higher in real terms (price-adjusted) for the three months from July to September.

Adjusted for prices and the calendar, it also showed a 0.3% increase.

Destatis also revised the previously published results for earlier quarters, incorporating newly available statistical data into the calculations for the first and second quarters.

This led to a revision of the real GDP growth rate for the second quarter from -0.3% to -0.2%.

Germany, Europe’s largest economy and the world’s third-largest, saw two consecutive years of recession in 2023 and 2024.

For 2025, the German government projects a slight economic recovery with a growth of 0.2%, while for 2026 and 2027, government forecasts indicate GDP increases of 1.3% and 1.4%, respectively.

This aligns with autumn projections from Germany’s leading economic institutes.

Europe’s largest economy faces headwinds on multiple fronts.

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