Market News
German economy rose 0.2% in 2025 - REUTERS
By Maria Martinez
BERLIN, Jan 15 (Reuters) - The German economy grew by 0.2% in the final quarter of last year and increased by 0.2% over the full-year 2025, the Federal Statistics Office said on Thursday.
The full-year increase in gross domestic product (GDP) is in line with the forecast by analysts polled by Reuters.
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"After two years of recession, the German economy edged back into growth. The growth is primarily attributable to increased household consumption and government expenditure", said Ruth Brand, President of the Federal Statistical Office, at the press conference.
Household consumption increased by a price adjusted 1.4 %. With price adjusted growth of 1.5%, government spending slightly exceeded the growth of household consumption, the statistics office said.
However, investment was down 0.5% compared with the previous year."The substantial growth in general government investment spending, particularly on defence, did not offset the decline in investment in machinery and equipment," the office said, as there was a 2.3% drop year-on-year.
General government budgets recorded a financial deficit of roughly 107 billion euros ($124.44 billion) at the end of 2025, according to provisional calculations.
($1 = 0.8598 euros)
(Reporting by Maria Martinez, Editing by Miranda Murray)
