FX.co ★ German Growth Momentum Eases as Q1 2026 GDP Slows to 0.3% YoY

Germany’s economic growth lost some momentum at the start of 2026, with gross domestic product (GDP) expanding by 0.3% year-on-year in the first quarter, down from 0.4% in the fourth quarter of 2025. The latest figure, released on 30 April 2026, underscores a mild deceleration in Europe’s largest economy as it continues to struggle to build stronger, sustained growth.

The data are based on year-over-year comparisons, meaning the current 0.3% reading reflects how much the economy grew in the first quarter of 2026 versus the same period a year earlier. Likewise, the previous 0.4% figure measured fourth-quarter 2025 output against the fourth quarter of 2024. The slight slowdown suggests that, while Germany remains in positive territory, its recovery path remains fragile and exposed to ongoing domestic and external headwinds.

For financial markets and policymakers, the softer pace may reinforce expectations of a cautious monetary and fiscal stance, as authorities balance the need to support growth without reigniting inflationary pressures. Investors will be closely watching subsequent quarters for signs of whether this moderation is temporary or the start of a more prolonged phase of subdued expansion.