Germany’s economy expanded 0.3% quarter on quarter in the second quarter of 2026, beating the 0.2% consensus and revising up the Federal Statistical Office’s flash estimate of 0.2%, as stronger exports and wholesale and retail activity underpinned the advance. The pace slowed from a first-quarter rise revised to 0.4% from 0.3%. Destatis President Ruth Brand said the economy is maintaining early-year momentum, with exports of goods and services up 2.0% and goods exports up 2.6%, while imports rose 1.5%. Gross fixed capital formation fell 0.2%, including a 1.4% drop in machinery and equipment, and final consumption rose just 0.1%. Price-adjusted GDP was 1.0% higher year on year, manufacturing value added rose 0.9%, and employment was about 45.7 million, down 0.5% from a year earlier. Summer revisions left 2025 growth at 0.2%, recast 2024 as flat at 0.0% rather than a 0.5% contraction, and lifted 2011–2021 growth by a cumulative 0.8 percentage point. Germany trailed the EU’s 0.5% quarterly and 1.2% year-on-year gains. After cutting its 2026 growth forecast to 0.5% in April over Iran War-driven energy prices, the Economy Ministry has noted improving competitiveness in energy-intensive manufacturing, with August flash PMI data also pointing to faster factory growth.