In T3 2025, Germany's GDP stagnated, avoiding technical recession, but the pressure on the government for economic recovery is increasing.

In the period from July to September 2025, the German economy stagnated, with a constant GDP compared to the previous quarter, contrary to analysts' forecasts of a growth of 0.1%.

This stagnation prevented a technical recession, which would have occurred if economic activity had declined for two consecutive quarters.

Investments in equipment had a positive trend, but exports decreased. This situation puts pressure on the government led by Chancellor Friedrich Merz, who must revive the economy, considering that Germany is the only G7 country without GDP growth in the last two years.

Merz plans a significant budget effort for the modernization of defense and infrastructure, but the effects of these investments will only be felt in 2026.

Analysts forecast a growth of 0.2% for the entire year of 2025, after two years of economic decline.