Germany’s economy grew by 0.3% in the fourth quarter of 2025, supported by stronger domestic consumption and higher construction investment, according to revised data from the Federal Statistical Office (Destatis). The result helped Europe’s largest economy close the year on a firmer footing after a period of uneven economic performance.
Domestic Demand Fuels Growth
Household and government consumption were the main drivers of growth in the final quarter. Increased domestic spending helped offset external economic pressures and supported overall stability. For the full year, Germany recorded growth of 0.2%, rising to 0.3% when adjusted for calendar effects, reflecting modest but positive momentum.
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Investment In Construction
Construction investment also contributed to the expansion, providing additional support to economic activity during a period of broader uncertainty. The sector’s performance suggests continued demand for infrastructure and housing-related projects, which could remain an important factor for growth in the coming quarters.
Strategic Outlook
Ruth Brand, President of Destatis, said in an interview that sustained domestic consumption played a central role in supporting economic activity at the end of the year. Looking ahead, analysts are likely to focus on whether consumer spending and investment levels remain stable as Germany navigates shifting global demand and ongoing economic adjustments. The fourth-quarter performance highlights the role of domestic demand in stabilizing growth and offers a more constructive starting point for the year ahead.
