”Q4 GDP Indicates Rising Momentum for Next Quarters Q4 GDP rose 0.3% QoQ after no growth in Q3, delivering a more robust performance. All components of domestic demand contributed positively to growth in Q4 except stocks, with Public Consumption making the largest contribution. In contrast, net exports dampened growth, as both exports and imports fell in Q4. Gross Value Added (GVA) increased by 0.4% QoQ after 0% in Q3. All sectors registered positive or flat growth (except Agriculture). Manufacturing stayed flat, Construction rose 1.7% QoQ, and Public Services grew by 0.8% QoQ. A key factor behind the stronger-than-expected results is the revision of the general government deficit, revised to 2.7% of GDP in 2025 from 2.4% in the first release (Natixis had forecast 2.8% before the preliminary estimates), amounting to €119.1bn versus €107.4bn in the preliminary figures. Most of the revision stems from changes at the federal level. Compared with 2024, the German deficit remained flat.”
Morten W. Langer
