Financial News: German Economy Expands In Q4; Unemployment Remains Unchang

German Economy Expands In Q4; Unemployment Remains Unchanged

01/30/2026 - 05:34:00 (RTTNews)

(RTTNews) - The German economy logged a better-than-expected growth in the fourth quarter, driven by increased household and government spending and unemployment remained unchanged at the start of 2026, official data revealed Friday.

Gross domestic product grew 0.3 percent after remaining flat in the third quarter, flash data from Destatis showed. This was the first expansion in three quarters and exceeded the forecast of 0.2 percent.

On a yearly basis, GDP was up 0.4 percent compared to an expansion of 0.3 percent in the third quarter. Economists were expecting a steady growth of 0.3 percent in the fourth quarter.

Household and government consumption increased in the fourth quarter, Destatis said. Detailed results will be released only on February 25.

"The German economy thus ended 2025 in positive territory after a turbulent year, particularly for foreign trade," Destatis said.

The statistical office confirmed that the economy grew 0.2 percent in 2025. The protracted period of de facto stagnation seems to be coming to an end, ING economist Carsten Brzeski said. A cyclical rebound is clearly in the making but more is needed to improve potential growth, the economist noted.

Elsewhere, data from the Federal Employment Agency showed that the German unemployment rate remained stable at 6.3 percent in January, as expected.

The number of people out of work remained unchanged in January after an increase of 3,000 in December. Economists had forecast an increase of 4,000.

Federal Employment Agency chairwoman Andrea Nahles said unemployment increased significantly for seasonal reasons at the start of the year. Unemployment exceeded the 3 million mark again.

Based on the labor force survey results, Destatis reported that the unemployment rate held steady at adjusted 3.8 percent in December. The number of unemployed rose 7,000 to 1.68 million.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Two-Year Note Auction Attracts Below Average Demand (04 hr(s), 04 min(s), 01 sec(s) ago)
(RTTNews) - Kicking off this week's series of announcements of the results of its long-term se ...Full Story»

Turkey Capacity Utilization Lowest Since August 2020; Business Confidence Eases (06 hr(s), 58 min(s), 01 sec(s) ago)
(RTTNews) - Turkey's manufacturing capacity utilization rate decreased for the third straight ...Full Story»

South Africa Leading Index Rises In January (07 hr(s), 43 min(s), 01 sec(s) ago)
(RTTNews) - South Africa's composite leading index improved somewhat in January after easing i ...Full Story»

Iceland Producer Price Inflation Rises To 5.5% (08 hr(s), 08 min(s), 01 sec(s) ago)
(RTTNews) - Iceland's industrial producer price inflation increased in February after easing i ...Full Story»

UK Private Sector Logs Slower Growth (08 hr(s), 09 min(s), 01 sec(s) ago)
(RTTNews) - The UK private sector registered a marked slowdown in business activity growth in Marc ...Full Story»

U.S. Labor Productivity Jumps Much Less Than Previously Estimated In Q4 (08 hr(s), 33 min(s), 01 sec(s) ago)
(RTTNews) - Revised data released by the Labor Department on Tuesday showed labor productivity in ...Full Story»

Eurozone Private Sector Growth Hits 10-Month Low (09 hr(s), 03 min(s), 01 sec(s) ago)
(RTTNews) - The euro area private sector growth eased to a ten-month low in March amid a reduction ...Full Story»

Poland Jobless Rate Rises To 6.1%, Highest Since September 2021 (09 hr(s), 33 min(s), 01 sec(s) ago)
(RTTNews) - The unemployment rate in Poland increased as expected in February to the highest level ...Full Story»