Germany’s GDP grows 0.2% in Q3, beating forecasts

Germany’s economy grew 0.2% in the third quarter of 2026, beating analysts’ expectations and extending its recovery despite the Iran war and low Rhine water levels. Household and government spending increased, with public investment in defense and infrastructure providing key support, while investment declined and export growth slowed. Economists cautioned that the recovery may not be sustainable without stronger private investment; high energy costs, weak demand and sluggish industry remain challenges. The government forecasts 1.3% growth for 2026, and business confidence has improved for six consecutive months.