BERLIN, July 30 (Xinhua) -- Germany's economy expanded more than expected in the second quarter as stronger exports offset weak domestic demand, preliminary data showed on Thursday. Meanwhile, revised data showed the economy performed better in 2024 than previously estimated.
Gross domestic product (GDP) in Europe's largest economy rose 0.2 percent quarter-on-quarter, the Federal Statistical Office (Destatis) said. First-quarter growth was revised up 0.1 percentage points to 0.4 percent.
Household consumption remained subdued and investment declined in the second quarter, while exports increased and drove overall growth, according to Destatis.
Economists said the figures pointed to a more resilient economy than expected, despite higher energy prices and tensions in the Middle East.
"The German economy remained on track for recovery in the first half of 2026," said Timo Wollmershaeuser, head of economic forecasts at the Munich-based ifo Institute. Rising industrial sales, particularly export business, suggest that value added in the crisis-hit manufacturing sector will likely continue increasing, he said.
Economic recovery is expected to continue in the second half of the year, supported by stronger external demand and expansionary fiscal policy, Wollmershaeuser noted.
Carsten Brzeski, global head of macro for ING Research, said some parts of German industry had benefited as competitors from other regions were hit harder by disruptions to shipping through the Strait of Hormuz, helping lift exports.
However, he cautioned that the near-term outlook for the German economy remained highly dependent on energy prices and the Middle East conflict, which affect both industry and households. A further spread of the conflict that disrupted additional trade routes could pose a renewed threat to Germany's fragile recovery, he said.
Destatis also revised its 2024 GDP estimate to flat from a previously reported 0.5-percent contraction. The statistics office said the revision reflected newly available structural business statistics on company turnover, cost structures and investment -- annual data that becomes available only around 18 months after the reference year.
The revision means Germany no longer recorded two consecutive years of economic contraction in 2023 and 2024. ■