The German economy grew by 0.2% in the third quarter of 2026 compared to the previous three months, according to preliminary data from the Federal Statistical Office Destatis, published on October 30. The result exceeded analysts' expectations for an increase of 0.1% and shows that Europe's largest economy continues to recover, albeit at a slower pace.
According to German public broadcaster ARD, citing official statistics, economic growth during the summer months surprised experts who had expected almost complete stagnation.
The main contributor to the positive result was consumer spending by households and the state, which increased slightly in the period July-September. At the same time, investment decreased and exports lost some of the momentum accumulated in the first half of the year.
On an annual basis, German gross domestic product increased by 1.3% after adjusting for price changes. When calendar factors are taken into account, growth reaches 1.2%.
The positive data comes against the backdrop of ongoing difficulties facing German industry, high energy costs and uncertainty in international trade.
Only a week ago, the German central bank - Bundesbank, predicted that the economy had stagnated in the third quarter. In its October monthly report, the institution cited low water levels on the Rhine, which hampered domestic water transport and industrial supplies, as the main reasons.
The Bundesbank also warned that high energy prices were limiting the purchasing power of households, and insufficient capacity utilization was deterring business investment.
Despite these risks, the central bank expects economic activity to accelerate in the last quarter of 2026. However, the outlook remains dependent on developments in geopolitical conflicts, energy prices and international trade.
Preliminary data for the third quarter showed that the German economy avoided the expected stagnation, but weak investment and a slowdown in exports continue to question the sustainability of the recovery.