‘Surprisingly good March' helps German GDP exceed expectations
The German economy grew by a surprising pace of 0.4% in the first quarter, according to revised data from the German statistics office. That was double the growth initially estimated.
The Federal Statistical Office had reported at the end of last month that the economy expanded by 0.2% in the January-March period compared with the previous quarter. The head of the office, Ruth Brandt, said that "the surprisingly good economic development seen in March" led to the revision.
The last time Germany saw stronger growth was in the third quarter of 2022, when gross domestic product expanded by 0.6%. Germany has struggled to generate significant growth for years, and the economy shrank in each of the last two years. In last year's fourth quarter, it contracted by 0.2%.
Related
Spain's economy grows at slightly slower pace at the start of the year
Eurozone grows 0.3% at the start of the year, industrial output soars
In its first forecast since new Chancellor Friedrich Merz's government took office earlier this month, the government's panel of independent economic advisers predicted on Wednesday that GDP will stagnate this year and grow by 1% next year.
It pointed to headwinds from US President Donald Trump's tariffs and trade threats, but said a huge infrastructure investment package put together by Merz's coalition offers opportunities for improvement next year.
Carsten Brzeski, global chief of macro at ING bank, said the improved first-quarter showing looks set to be "a positive one-off" at least in the short term, fuelled by businesses trying to get ahead of Trump's tariffs.
"As a result of the announced tariffs and in anticipation of 'Liberation Day,' German industrial production and exports surged in March," Brzeski said in a research note.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Politico
an hour ago
- Politico
What Goldman CEO David Solomon is thinking
Presented by Editor's note: Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our subscribers each morning at 5:15 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day's biggest stories. Act on the news with POLITICO Pro. Quick Fix Business leaders are feeling better about President Donald Trump's agenda than they were in the aftermath of the 'Liberation Day' tariff announcements. But with major trade deals still outstanding — and key questions about future tax policy and the federal government's fiscal trajectory unresolved — CEOs are starting to plan for 2026 with an incomplete roadmap on how major economic policies will shake out, Goldman Sachs Chairman and CEO David Solomon tells POLITICO. 'At the moment, there's a sense that things are moving forward constructively,' Solomon said in an interview shortly after Trump touted a new agreement with China that represented a further de-escalation in trade tensions. 'People would like the level of certainty around the policy direction to continue to increase.' As with all things in Trump 2.0, the direction of travel can change on a dime. Hours after the China framework was unveiled — and Treasury Secretary Scott Bessent told lawmakers that the administration would likely delay its July 8 deadline for trade negotiations— the president said he would unilaterally set tariff rates in the coming weeks. (The interview with Solomon took place before both events.) Wall Street banks and the overall economy have fared well despite the uncertainty generated by abrupt changes to tariff rates and Congress's stop-and-start progress on the 'big, beautiful bill' that's at the center of Trump's domestic agenda. While many investment bankers have been dour about the current state of dealmaking, Solomon was bullish on Goldman's pipeline and said both the economy and deal activity have proven 'more resilient than I would have expected.' Trump, along with top administration officials like Bessent, have pointed to the string of recent economic data as a sign that the administration's overall agenda is working — despite the bellyaching of most economists — and that growth should accelerate when the tax and spending bill is enacted. Solomon shares the administration's perspective that current tax cuts should be extended. Nevertheless, with bond investors skittish about how the legislation could affect deficits, the banker said that the long-term outlook for future economic growth is hazy. 'We're in a place where we've increased our debt and deficit levels. And there doesn't seem to be a path — at the moment — to reducing them,' he said. 'That's something that I think we're going to have to wrestle with. And it's something that, over time, has the potential to crowd out investment and slow down growth.' 'Can we have a higher level of growth that can make it easier for us over time to absorb the spending levels and the deficit levels that we have?' he added. 'That's unclear at this point and time.' You can read my full Q&A with Solomon in POLITICO Magazine. IT'S FRIDAY — If anyone else reading this happens to run a major U.S. bank, I'd like to hear from you. Email me at ssutton@ Driving the Day University of Michigan's preliminary consumer sentiment reading for June is out at 10 a.m. … Breaking overnight — Eric Bazail-Eimil: 'Israel said Thursday that it launched a 'preemptive strike' against Iran, raising the specter of a broader regional conflict between the long-time Middle East adversaries.' Rates on the brain — Trump lashed out at Federal Reserve Chair Jerome Powell once again over interest rate policy on Thursday, labeling the central banker a 'numbskull' for not reducing borrowing costs. 'We're going to spend $600 billion a year, $600 billion because of one numbskull that sits here [and says] 'I don't see enough reason to cut the rates now,'' Trump said, per CNBC's Kevin Breuninger. — 'Let's say there was inflation. In a year from now, raise your rates. I don't mind, raise your rates. I'm all for it. I'll be the one to be calling you,' Trump said, according to Bloomberg's Justin Sink. 'He'll be too late for that, too.' On trade — Trump also raised expectations for when his administration will broker a comprehensive trade agreement with China, writes Doug Palmer. Plouffe heads to Coinbase — David Plouffe, a top Democratic strategist and former adviser to President Barack Obama and Vice President Kamala Harris, is joining Coinbase's global advisory committee, Christine Mui and Chris Cadelago report. On the Hill Rescissions, rescissions — From Katherine Tully-McManus and Jennifer Scholtes: 'House Republicans have narrowly advanced a request from the White House to claw back $9.4 billion that lawmakers have already approved for public media and more than a dozen accounts across the State Department focused on foreign assistance.' Cost of doing business — Low-income households stand to lose as much as $1,600 a year in federal resources due to cuts in the House version of Trump's 'big, beautiful bill, per Jennifer's write up of the latest analysis from the Congressional Budget Office. Annual resources to the highest-income households would climb by $12,000. — The CBO and projections from the Penn Wharton Budget Model and Yale Budget Lab have consistently estimated that the legislation will add to the deficit over the next decade. Treasury Secretary Scott Bessent told Senate Finance lawmakers on Thursday that he expects the opposite to occur, per Bloomberg's Cam Kettles. — From Yahoo Finance's Ben Werschkul and David Foster: 'The claims from 1600 Pennsylvania Avenue go as high as $8 trillion in black ink (an $11 trillion chasm with the experts) in claims that go beyond what even Capitol Hill Republicans are projecting … As for reconciling the two, some economists essentially throw up their hands.' Mad-libbing SALT — Senate Republicans may leave out the House's higher state-and-local tax deduction from its version of the bill in order to allow negotiations to continue. Senate Finance Chair Mike 'Crapo and I had a long conversation about it,' said Sen. Markwayne Mullin (R-Okla.) per Benjamin Guggenheim and Jordain Carney. 'Maybe it'd be better to just carry communication rather than stake our flag right down.' Not so fast — Senate Banking Chair Tim Scott (R-S.C.) threw cold water on Texas Republican Sen. Ted Cruz's effort to include language in the megabill that would bar the Fed from paying interest to banks, Jasper Goodman and Victoria Guida report. Next step in stablecoins — Jasper also reports that the Senate's landmark stablecoin legislation moved one step closer to passage on Thursday, clearing a procedural vote 67-30. At the regulators New IRS chief — The Senate voted along party lines to confirm Billy Long to be the next head of the Internal Revenue Service. The former six-term Missouri congressman will enter the tax agency 'during a period of upheaval' due to workforce reductions and an overhaul of its technology systems, reports Bernie Becker. Regulatory uncertainty — The pace and volume of regulatory shifts that have occurred so far this year are creating 'unanticipated business risks,' according to KPMG's mid-year report. 'Growing regulatory divergence and fragmentation add another layer of complexity to establishing a clear path from strategy and operations to effective risk and compliance,' Amy Matsuo, the consulting firm's U.S. regulatory insights leader, said in a statement. 'Will a deregulatory policy really equate to deregulation?'
Yahoo
an hour ago
- Yahoo
Fabrizio Romano Confirms Florian Wirtz to Liverpool is ‘100% Done'
Liverpool Beat Rivals to Sign Florian Wirtz in Stunning Transfer Coup Liverpool have pulled off a sensational coup in the transfer market, with the signing of Florian Wirtz now '100% done,' according to transfer expert Fabrizio Romano. The Bayer Leverkusen star, widely regarded as one of the brightest attacking midfielders in Europe, has chosen Anfield as his next destination, turning down strong interest from Bayern Munich, Real Madrid and Manchester City. Advertisement Romano confirmed on Tuesday that 'Liverpool verbally agree deal in principle with Bayer Leverkusen for package reaching €150m add-ons included,' adding that the 'player side already agreed two weeks ago with move now imminent' and that 'Wirtz set for medical and contract signing.' The 22-year-old German international, currently on holiday, is expected to complete his move following a medical once the transfer window reopens on 16 June. This delay is due to FIFA Club World Cup regulations. Behind the Deal: Slot's Role and Player Decision This wasn't a transfer engineered overnight. Initial speculation linked Wirtz with Manchester City, especially after he was spotted in England with his parents, who also serve as his representatives. However, those assumptions were quickly flipped on their head. German reports suggested that the Wirtz entourage travelled not to Manchester, but to Merseyside. Advertisement Arne Slot, fresh off a Premier League-winning debut campaign, is believed to have played a pivotal role in securing the player's decision. During his UK visit, Wirtz reportedly held a direct conversation with the Liverpool manager. That meeting appears to have been decisive. The report explains that 'a conversation with the Liverpool boss convinced him to choose a move to Anfield over going to Bayern Munich.' Slot's project, vision and playing style are said to have swayed the attacking midfielder, who has long been touted as the spiritual successor to Mesut Özil in the German national team setup. Photo: IMAGO Mixed Reports but Deal Remains on Track Despite Romano's strong declarations, some sources remain slightly more cautious. A contradictory update came from another senior journalist, who stated there was 'no agreement yet' between the clubs. However, even that statement confirmed that Liverpool and Leverkusen were in the 'final stages' of negotiations. Advertisement Romano doubled down on his position, clarifying that 'I told you two days ago (Tuesday) that the agreement is done. I can confirm that the agreement is done. You can consider Wirtz as a Liverpool player.' The delay in any official confirmation is, according to Romano, entirely due to Wirtz being on holiday. Once he returns, the medical and contract signing are set to follow swiftly. Photo: IMAGO Strategic Timing Ahead of Window Opening With the summer transfer window closed until 16 June, Liverpool and Bayer Leverkusen have time to finalise the structure of the deal, which is said to be complex due to the size of the package involved. Advertisement This breathing room could prove beneficial, as clubs look to iron out technicalities and payment schedules before the move is rubber-stamped. The final valuation, reportedly reaching €150 million including add-ons, represents a record-breaking commitment from Liverpool. But if Wirtz can translate his Bundesliga brilliance to the Premier League, it may well be a bargain in the long run. Our View – Anfield Index Analysis This is seismic. The sort of signing Liverpool fans used to dream about but rarely saw happen unless a star was being sold. To beat Bayern, Real Madrid and Man City to Florian Wirtz speaks volumes not just about Liverpool's pulling power, but also about the Slot effect. Arne Slot hasn't just won the league, he's clearly winning hearts and minds off the pitch too. Advertisement Wirtz is a generational talent. His ability to glide past players, his intelligence between the lines and his fearless creativity are exactly what this team needs to evolve again. While fans are rightly still emotional after the Klopp era, Slot seems to be building something both sustainable and exciting. There's a buzz growing. The thought of Wirtz linking up with Salah, Szoboszlai and Diaz in a fluid front four will have fans counting down the days until pre-season. The fee might be huge, but so was the statement. This is not a rebuild, it's a reload. Credit to Fabrizio Romano for staying consistent on this story. His updates have been the most confident throughout and, once again, he appears to have been proven right.
Yahoo
an hour ago
- Yahoo
🚨 Wirtz set to cost much less, reports: Bayer and LFC agree on fee
The transfer poker for Florian Wirtz has been going on for weeks, but now the clubs are said to have clarified the last details. According to current consistent media reports from England and Germany, only the medical check is still standing in the way of the deal. However, the well-known transfer experts in the scene have now raised a much bigger puzzle with the details. The 'kicker' and 'Sky' reporter Florian Plettenberg report consistently that Liverpool will pay a fixed transfer fee of 130-135 million euros for Wirtz, and the sum could increase to up to 150 million euros through various bonuses. Advertisement In contrast, there are the reports from England's transfer guru David Ornstein from 'The Athletic' and the also well-informed Andy Hunter from 'The Guardian'. The two Englishmen estimate the transfer fee at "only" 100 million pounds and 16 million pounds in bonuses, which is equivalent to approximately 117.5 million euros and almost 19 million euros in bonuses. With a possible total sum of a maximum of 136.5 million euros, the Englishmen thus locate the transfer fee significantly lower than their German colleagues. If not all bonuses are achieved, the transfer could ultimately not even go through as the most expensive Bundesliga sale in history. Ousmane Dembélé currently holds this status, who switched from Dortmund to Barcelona in 2017 for 135 million euros. So, is Wirtz significantly cheaper than thought? If you believe the reports from England, Liverpool FC has managed to negotiate down the transfer fee originally demanded by Bayer Leverkusen after all. This article was translated into English by Artificial Intelligence. You can read the original version in 🇩🇪 here. 📸 Alex Grimm - 2025 Getty Images
