By Maria Martinez BERLIN, April 30 (Reuters) - Germany's economy grew by more than expected in the first quarter of 2026 despite the shock to energy prices from the war in Iran, but unemployment rose above the 3 million mark in April.

Germany’s economy expanded by 0.3% in the first quarter of 2026, outpacing expectations despite energy price shocks from the Iran war, yet unemployment unexpectedly rose above 3 million in April. The labor market showed no signs of a turnaround, with job ...

Fiscal spending is now a critical tailwind for Germany's economy, as the Iran war hammers its growth outlook.

Germany’s economy expanded in Q1 2026, driven by consumption and exports, but unemployment tops 3 million in April.

Preliminary data released on April 30 shows a 0.3% GDP increase, outperforming analyst forecasts of 0.2%. This growth was primarily fueled by robust

"The German economy thus ended 2025 in positive territory after a turbulent year, particularly for foreign trade," Destatis said. The economy grew by 0.2% in 2025, breaking two consecutive years of recession. This occurred despite headwinds related to its ...

With 0.3% quarter-on-quarter growth, the German economy finally pulled out of stagnation at the end of last year. A cyclical rebound is clearly in the making but more is needed to improve potential growth. While a cyclical improvement is currently in the ...

Germany saw modest economic growth in Q1 2024, but the Iran war and rising energy prices are set to weigh on future prospects, says the Bundesbank.