Germany's economy posts third straight growth

Germany's economy grew by 0.3% in the second quarter of 2026, surpassing expectations, driven by a strong increase in exports which rose by 2%. Despite this surprising growth, public finances are under significant pressure, with the overall deficit reaching 71.3 billion euros in the first six months of the year, exceeding European Union limits, as deficits in both the federal and state governments have increased. Economists anticipate that the deficit could rise to more than 4% of GDP in 2027 due to higher spending and borrowing, jeopardizing the country's top-notch credit rating.

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