German economy posts unexpected growth in first quarter amid U.S. tariff fears-Xinhua

German economy posts unexpected growth in first quarter amid U.S. tariff fears

Source: Xinhua

Editor: huaxia

2025-05-23 19:46:30

BERLIN, May 23 (Xinhua) -- Germany's struggling economy delivered an unexpected performance in the first quarter of 2025, with gross domestic product (GDP) rising by 0.4 percent compared to the previous quarter, according to figures released Friday by the Federal Statistical Office (Destatis).

The growth figure is double the office's initial estimate of 0.2 percent. However, GDP still declined by 0.2 percent compared to the same period a year earlier.

"Growth was slightly higher than predicted in the first estimate due to the surprisingly strong economic performance in March," said Ruth Brand, president of the statistics office. "In particular, output in manufacturing and exports exceeded earlier expectations."

The office reported a notable increase in foreign trade during the first quarter. Manufacturing output and exports, particularly in the automotive and pharmaceutical sectors, saw a marked improvement, as producers accelerated shipments ahead of potential U.S. tariffs.

"Anticipatory effects driven by fears of an emerging trade conflict with the United States likely contributed to the positive performance," the office noted.

Despite this quarter's uptick, the broader outlook for Germany's economy remains subdued. On Wednesday, key German economic advisers have downgraded their growth forecast for 2025 to zero, citing persistent economic stagnation.