Press release No. 017 of 15 January 2026
WIESBADEN/BERLIN – According to first calculations of the Federal Statistical Office (Destatis), the price adjusted gross domestic product (GDP) in 2025 was 0.2% higher than in the previous year. The increase in economic performance in Germany amounted to 0.3% after adjustment for calendar effects. "After two years of recession, the German economy edged back into growth. The growth is primarily attributable to increased household final consumption expenditure and government final consumption expenditure", said Ruth Brand, President of the Federal Statistical Office, at the press conference (only in German) held in Berlin on Germany's 2025 gross domestic product. "On the other hand, exports recorded another decline. Germany's export business faced strong headwinds owing to higher US tariffs, the appreciation of the euro and increased competition from China. In addition, investment remained weak, with fixed capital formation in machinery and equipment and in construction down on the previous year", Brand added.
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|
| 2.2 | 2.8 | 1.1 | 1.0 | -4.1 | 3.9 | 1.8 | -0.9 | -0.5 | 0.2 |
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|
| 2.1 | 3.1 | 1.1 | 1.0 | -4.5 | 3.9 | 1.9 | -0.7 | -0.5 | 0.3 |
Further decline in gross value added in manufacturing and construction industry; mixed performance in service sector
Overall, gross value added was down slightly in 2025. After adjustment for price effects, it was 0.1% lower than in the previous year. However, there were significant differences in the performance of the various sectors.
In manufacturing, output in 2025 was down for the third year in succession, with price adjusted gross value added falling 1.3% on the previous year. The decline was therefore less pronounced than in the two previous years. In particular, large sectors such as the automotive industry and the manufacture of machinery and equipment recorded losses, with both sectors facing stiffer competition in global markets. In the chemical industry and other energy-intensive industrial branches, economic activity fell again, dipping just below the low levels seen in the previous years.
2025 was also another difficult year for the construction industry: price adjusted gross value added fell again by 3.6% and the number of insolvencies rose. Persistently high construction prices had a significant dampening effect on building construction and building completion work, in particular. The situation for civil engineering was better, with the new construction and repair of roads, railway lines or energy grids resulting in a slight improvement on the performance of the previous year.
The service sector presented a mixed picture. For example, price adjusted gross value added of business services was down year on year (-0.8%). Other services, such as for sports, entertainment and recreation, also reported a decline (-0.3%). By contrast, price adjusted gross value added increased in trade, transport, accommodation and food services (+1.2%), with the retail sector making a particular contribution to this result. On the other hand, accommodation and food service activities registered a drop in performance compared with the previous year. The public services, education, health sector experienced another increase in value added (+1.4%).
Final consumption expenditure supports GDP, investments register further decline
After price adjustment, the final consumption expenditure of both households and government in 2025 was up significantly on the previous year. Overall, household final consumption expenditure increased by a price adjusted 1.4 %, with households spending more on health, in particular, than in the previous year (+3.8%). There was also an uptick in expenditure on mobility (+2.7%), primarily owing to increased purchases of passenger cars. On the other hand, households once again spent less on accommodation and food service activities (‑0.6%) than in the previous year. With price adjusted growth of 1.5%, final consumption expenditure by government slightly exceeded the growth of household final consumption expenditure in 2025. The increase was primarily driven by the fact that social security funds had to spend more on hospital and medical treatment, medication and care. Compensation of employees paid by general government also rose further.
Overall, gross fixed capital formation was down 0.5% compared with the previous year. Gross fixed capital formation in construction was down 0.9%, marking the fifth consecutive decline. Persistently high construction prices are likely to have prevented housing construction projects, in particular, from being implemented. By contrast, increased investment was reported in other buildings and structures, such as roads, bridges, factories or office buildings. In 2025, gross fixed capital formation in machinery and equipment declined even more than gross fixed capital formation in construction, dropping 2.3% year on year after adjustment for price effects. The substantial growth in general government investment spending, particularly on defence, did not offset the decline in commercial gross fixed capital formation in machinery and equipment.
Exports of goods and services (total) down slightly, sharp increase in imports of goods
In a turbulent year for German foreign trade, exports in 2025 registered a further decline (-0.3%), the third in succession. This was due to exports of goods, which were 0.7% lower than the level of the previous year, after adjustment for price effects. Key areas of Germany's export business were affected: according to the data currently available for foreign trade statistics up to October 2025, fewer motor vehicles, trailers and semi-trailers, machines and chemical products were exported. By contrast, exports of services were up a price adjusted 1.1% on the previous year.
In terms of imports, the situation in 2025 was entirely different: following two years of decline, imports rose substantially by 3.6% after adjustment for price effects. This development was driven by imports of goods, which increased markedly by 5.1%. More machinery, electrical equipment, pharmaceutical products and food, for example, were imported than in 2024. At 0.2%, growth in the import of services was lower than the growth rates recorded in the previous years.
Long-term increase in the number of persons in employment comes to a halt
On an annual average, 46.0 million persons were in employment in 2025 whose place of employment was in Germany. This figure remained virtually unchanged compared with the previous year. With the exception of the pandemic year of 2020, the number of persons in employment had risen consistently since 2006. However, the pace of employment growth slowed considerably from the start of 2024, with growth coming to a halt in 2025. As in the previous year, employment gains were entirely attributable to the service branches, particularly the branch of public services, education, health. By contrast, the number of persons in employment in manufacturing and construction decreased once again.
General government deficit ratio down on the previous year
General government budgets recorded a financial deficit (net borrowing) of roughly 107 billion euros at the end of 2025, according to provisional calculations. As in the previous year, central government, state government, local government and social security funds registered a deficit at the close of 2025. The financial deficit was almost 8 billion euros lower than in 2024 because government revenue (+5.8%) grew more strongly than government expenditure (+5.1%). Measured as a percentage of GDP at current prices, which was up 3.3%, Germany recorded a deficit ratio of 2.4% in 2025. The ratio is therefore lower than in the previous year (2.7%) and remains below the 3% reference value of the European Stability and Growth Pact. The government expenditure to GDP ratio was 50.3% in 2025, thereby inching above 50% for the first time since the pandemic years of 2020 and 2021.
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Total | -76.138 | -105.249 | -115.295 | -107.420 |
| Central government | -111.159 | -92.720 | -60.916 | -65.135 |
| State government | 19.417 | -7.789 | -21.599 | -9.979 |
| Local government | 6.823 | -13.535 | -20.956 | -31.120 |
| Social security funds | 8.781 | 8.795 | -11.824 | -1.186 |
| Net lending/net borrowing of general government, percent of nominal GDP | -1.9 | -2.5 | -2.7 | -2.4 |
GDP in 4th quarter of 2025 up on previous quarter according to results available
The current gross domestic product result for 2025 contains a first, very early estimate for the 4th quarter of 2025. As the data basis of this estimate is not as complete as that of the regular quarterly calculation, there is a higher degree of uncertainty. According to the information available so far, GDP in the 4th quarter of 2025 was up 0.2% on the previous quarter after adjustment for price, seasonal and calendar variations. The results for the first three quarters of 2025 were also reviewed. After adjustment for price, seasonal and calendar effects, this meant that quarter-on-quarter growth in the first quarter of 2025 was 0.1 percentage points higher than previously published.
The Federal Statistical Office will publish the regular first estimate for the gross domestic product in the 4th quarter of 2025 on 30 January 2026. Detailed national accounting results will follow on 25 February 2026.
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| 1: Contributions to growth of price-adjusted GDP in percentage points. | ||||
| Change on the previous year in % | ||||
| At current prices | ||||
| Final consumption expenditure of households and NPISHs | 13.7 | 5.9 | 2.9 | 4.0 |
| Government final consumption expenditure | 6.2 | 4.3 | 5.1 | 5.9 |
| Gross fixed capital formation (GFCF) | 10.5 | 3.8 | -0.9 | 2.3 |
| Domestic uses | 11.4 | 4.1 | 2.8 | 4.7 |
| Exports | 16.3 | -0.4 | -1.1 | 1.0 |
| Imports | 25.0 | -4.4 | -0.9 | 4.3 |
| Gross domestic product (GDP) | 8.3 | 5.8 | 2.6 | 3.3 |
| Gross national income | 8.0 | 6.0 | 2.8 | 3.2 |
| Net national income (factor costs) | 5.1 | 7.3 | 1.5 | 2.8 |
| Compensation of employees | 6.0 | 7.1 | 5.5 | 5.1 |
| Property and entrepreneurial income | 3.1 | 7.8 | -8.1 | -3.9 |
| Disposable income of households | 8.9 | 6.2 | 4.0 | 3.1 |
| Price adjusted | ||||
| Final consumption expenditure of households and NPISHs | 6.5 | -0.7 | 0.5 | 1.4 |
| Government final consumption expenditure | 0.6 | -0.2 | 2.6 | 1.5 |
| Gross fixed capital formation (GFCF) | -0.1 | -2.0 | -3.3 | -0.5 |
| GFCF in construction | -4.3 | -5.9 | -3.4 | -0.9 |
| GFCF in machinery and equipment | 4.7 | -0.5 | -5.4 | -2.3 |
| GFCF in other products | 3.8 | 6.6 | 0.2 | 3.8 |
| Domestic uses | 3.1 | -0.9 | 0.2 | 1.7 |
| Exports | 3.9 | -1.4 | -2.1 | -0.3 |
| Imports | 7.6 | -1.4 | -0.6 | 3.6 |
| Balance of exports and imports 1 | -1.2 | 0.0 | -0.7 | -1.5 |
| Gross domestic product (GDP) | 1.8 | -0.9 | -0.5 | 0.2 |
| GDP per person in employment | 0.5 | -1.5 | -0.6 | 0.2 |
| GDP per hour worked by persons in employment | 0.3 | -1.2 | -0.3 | 0.4 |
| Gross value added, total | 2.2 | -0.5 | -0.6 | -0.1 |
| including: | ||||
| Manufacturing | 2.0 | -1.6 | -4.3 | -1.3 |
| Construction | -11.2 | -4.4 | -3.8 | -3.6 |
| Trade, transport, accommodation and food services | 7.1 | -2.6 | 0.2 | 1.2 |
| Information, communication | 1.8 | 7.5 | 2.1 | 1.3 |
| Business services | 2.9 | 1.2 | 0.8 | -0.8 |
| Public services, education, health | 4.1 | 0.2 | 1.2 | 1.4 |
| Other services | 16.3 | 1.3 | 1.0 | -0.3 |
More information:
The statement for the press conference on Germany's 2025 gross domestic product, which contains additional results, is available on the press conference webpage (only in German).
More detailed results on the 2025 GDP are contained in Fachserie 18 "Volkswirtschaftliche Gesamtrechnungen", Reihe 1.1 "Erste Jahresergebnisse" (only in German).
Other publications on national accounts and a detailed quality report can be found under "Publications" on the "National Accounts, Domestic Product" page.
These and other current national accounting results are provided by tables 81000 in the GENESIS-Online database. Visualised updated results of national accounts are also available in our interactive National Accounts Monitor for Germany (www.destatis.de/vgr-monitor-deutschland (only in German)).
Germany's GDP can also be found on the Economic Dashboard, which is part of Dashboard Germany (www.dashboard-deutschland.de (only in German)). In this data portal, the Federal Statistical Office brings together up-to-date indicators from official statistics producers and other data providers on the topics of the economy, finance, the labour market, construction, housing, energy and Ukraine. The portal also contains the interactive Economic Pulse Monitor (only in German) tool for real-time economic monitoring.
