Germany Posts Stronger-than-expected Q1 Growth as Energy Shocks and Rising Unemployment Cloud Outlook
- brg_news_room
- 3 days ago
- 1 min read
GERMANY: Germany recorded stronger-than-expected economic growth in the first quarter of 2026, despite energy price shocks linked to the Iran war, though unemployment climbed above 3 million in April.
According to preliminary data from the country’s statistics office, gross domestic product (GDP) increased by 0.3% quarter-on-quarter, exceeding analysts’ expectations of 0.2%. Growth was primarily supported by higher household consumption and government spending, alongside an uptick in exports.
However, Europe’s largest economy continues to face challenges in regaining sustained momentum following the COVID-19 pandemic, with mounting competition from China and persistently high energy costs weighing on its export-driven model. The recent surge in energy prices, triggered by the Iran conflict, presents an additional risk to its recovery outlook.
Meanwhile, EU-harmonised inflation in Germany rose to 2.9% in April, driven largely by increasing energy prices.
Source: Reuters
