Overview

• Germany's Q1 2025 GDP growth was revised from 0.2% to 0.4%, the strongest quarterly growth since Q3 2022.
• The revision was attributed to a robust March, with exports rising 3.2% and private consumption up 0.5%.
• Pull-forward effects due to U.S. tariff concerns contributed to the export surge, particularly in autos and pharmaceuticals.
• Despite the Q1 boost, the Economic Council, IMF, and EU Commission forecast economic stagnation for 2025.
• Business sentiment has improved for five consecutive months, with mid-year policy measures and tariff negotiations seen as crucial for recovery.