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Reading: German progress hits 0.4% in Q1, double the forecast as pre-tariff exports surge
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German progress hits 0.4% in Q1, double the forecast as pre-tariff exports surge

Editorial Board
Editorial Board Published May 23, 2025
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German progress hits 0.4% in Q1, double the forecast as pre-tariff exports surge
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German progress hits 0.4% in Q1, double the forecast as pre-tariff exports surge

Germany’s economic system expanded extra rapidly than beforehand thought firstly of the 12 months, official information confirmed Friday, as its exports surged earlier than US President Donald Trump imposed sweeping tariffs.

Gross home product (GDP) in Europe’s high economic system grew 0.4 % from January to March in comparison with the earlier quarter, in line with closing figures from federal statistics company Destatis.

An preliminary estimate had put the growth at 0.2 %, and analysts had not been anticipating any change.

Destatis mentioned the economic system had carried out “surprisingly well” in March on the again of rising exports, which had pushed up the GDP determine.

There was important progress in shipments of prescribed drugs and motor autos, that are main exports to the USA, it mentioned.

“Anticipatory effects amid concerns over a brewing trade war with the US are therefore likely to have contributed to the positive development,” mentioned the company in an announcement.

Trump imposed his sweeping “Liberation Day” tariffs firstly of April, though he has since paused the very best charges to permit for talks.

The leap in output is a lift for the eurozone’s conventional powerhouse after two years of recession, and can also be excellent news for brand new Chancellor Friedrich Merz.

Analysts have warned that the tariffs might hit export energy Germany onerous later within the 12 months, with most now anticipating the economic system to stagnate throughout the entire of 2025.

This story was initially featured on Fortune.com

TAGGED:doubleexportsforecastGermangrowthhitspretariffSurge
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