German economy exits two year recession with modest zero point two percent growth in 2025
Germany ended a two-year recession with 0.2 percent growth in 2025 driven by spending. Structural issues persist as exports and private investment decline.
Insights:
The German Federal Statistics Office announced on January 15, 2026, that the economy of Germany 
DEgrew by 0.2% in 2025, marking the first expansion in three years. This modest increase signals an exit from a two-year recession that had gripped Germany. While the growth represents a positive turn, Ruth Brand ruth brand, President of the Federal Statistical Office, noted that the economy remains sluggish. The DAX index and related investment vehicles like the iShares MSCI Germany ETF are being closely watched as markets digest the news of this fragile recovery.
DEgrew by 0.2% in 2025, marking the first expansion in three years. This modest increase signals an exit from a two-year recession that had gripped Germany. While the growth represents a positive turn, Ruth Brand ruth brand, President of the Federal Statistical Office, noted that the economy remains sluggish. The DAX index and related investment vehicles like the iShares MSCI Germany ETF are being closely watched as markets digest the news of this fragile recovery.
