Germany’s economy grew 0.2% in the third quarter from the previous three months, according to preliminary price-adjusted data from the Federal Statistical Office. The expansion extended the recovery to a fourth consecutive quarter and came despite low water levels on the Rhine and high energy prices. GDP rose 1.3% from a year earlier after adjusting for prices, exceeding the 0.1% increase expected by analysts polled by Reuters. Household and government consumption increased slightly, while export growth slowed noticeably from the first half of 2026. Economists said expanded public spending on infrastructure and defence was the main force behind the recovery, with private-sector momentum still subdued. Germany’s government expects growth of 1.3% in 2026 and 1.1% in 2027, while the Ifo economic institute’s business climate index rose for a sixth straight month in October.