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Germany’s economy expanded more quickly than previously thought at the start of the year, official data showed Friday, as its exports surged before US President Donald Trump imposed sweeping tariffs.
Gross domestic product (GDP) in Europe’s top economy grew 0.4 percent from January to March compared to the previous quarter, according to final figures from federal statistics agency Destatis.
An initial estimate had put the expansion at 0.2 percent, and analysts had not been expecting any change.
Destatis said the economy had performed “surprisingly well” in March on the back of rising exports, which had pushed up the GDP figure.
There was significant growth in shipments of pharmaceuticals and motor vehicles, which are major exports to the United States, it said.
“Anticipatory effects amid concerns over a brewing trade war with the US are therefore likely to have contributed to the positive development,” said the agency in a statement.
Trump imposed his sweeping “Liberation Day” tariffs at the start of April, although he has since paused the highest rates to allow for talks.
The jump in output is a boost for the eurozone’s traditional powerhouse after two years of recession, and is also good news for new Chancellor Friedrich Merz.
Analysts have warned that the tariffs could hit export power Germany hard later in the year, with most now expecting the economy to stagnate across the whole of 2025.
This story was originally featured on Fortune.com
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https://fortune.com/europe/2025/05/23/german-growth-hits-0-4-q1-double-forecast-pre-tariff-exports-surge-trump/
AFP
