The German economy expanded by 0.4 percent quarter-on-quarter in Q1 2025, revised up from 0.2 percent and marking the strongest growth since Q3 2022. The rebound was driven by higher household spending, improved manufacturing output, and a sharp 3.2 percent rise in exports. Fixed investments and imports also improved. Most sectors showed gains, especially manufacturing and information services. On a yearly basis, GDP was flat, avoiding contraction after a 0.2 percent drop in Q4.
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