Berlin, April 30, 2026 German economy grows 0.3% despite Iran war
The German economy expanded by 0.3% in the first quarter of 2026, outperforming forecasts despite global disruptions caused by the Iran war, according to preliminary data from the Statistical Office.
Growth Against Odds
Germany’s gross domestic product (GDP) rose by 0.3% in the first quarter compared to the previous quarter, surpassing the 0.2% growth predicted by economists polled by Reuters. This marks a slight acceleration from the 0.2% growth recorded in the fourth quarter of 2025. The uptick occurred despite the Iran war’s strain on global energy supplies and economic stability.
Private and public consumption expenditures both increased during the period, contributing to the stronger-than-expected performance. Exports also saw a rise in the first three months of the year, though the Statistical Office has yet to release detailed sectoral breakdowns.
Structural Challenges Persist
While the growth figures signal resilience, economist Dany-Knedlik pointed to underlying vulnerabilities. "gibt natürlich die Effekte des Iran-Kriegs" ("there are naturally the effects of the Iran war"), she noted, highlighting structural flaws in the German economy. The war has exacerbated global energy market volatility, posing risks to sustained recovery.
The conflict’s impact on supply chains and commodity prices remains a concern, particularly for export-dependent industries. Preliminary data suggests that Germany’s export growth, while positive, may face headwinds in subsequent quarters if geopolitical tensions persist.