FRANKFURT, July 30 (Bernama-dpa) -- German economic output may have grown by 0.1 per cent in the second quarter compared with the first, analysts predicted ahead of the release on Thursday of official figures by the Federal Statistical Office (Destatis).
Despite uncertainty caused by the Iran conflict, recent data have raised hopes that Germany's economy has returned to modest growth.
Destatis publishes its first official estimate of gross domestic product (GDP) for the April-June period on Thursday morning.
Recent economic indicators have been mildly encouraging. Business sentiment, measured by the ifo Institute, improved for the third consecutive month in July. German industry has also reported an increase in foreign orders, while exports rose for the fourth straight month in May.
However, the uncertain situation in The Gulf continues to weigh on the outlook.
Economists expect Germany, whose economy relies heavily on imported raw materials, to face the effects of the conflict involving Iran for some time.
In the first quarter of 2026, German GDP grew by 0.3 per cent, driven mainly by stronger exports.
That performance fuelled hopes that Europe's largest economy was finally gaining momentum after three years of weak growth.
Expectations have also been supported by the German government's plans for major public investment in roads, rail infrastructure and defence.
In 2025, Germany narrowly avoided recording a third consecutive year without economic growth, with the economy expanding by just 0.2 per cent.
--BERNAMA-dpa