German economy defies Middle East war by growing in the second quarter
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https://think.ing.com/snaps/german-gdp-growth-q2-26/
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4 itemsGerman economy defies Middle East war in first quarter
The desk flags the surprising resilience of the German economy amidst geopolitical tensions, noting that first-quarter results defy expectations of decline. Per the full note from ING Economics, despite the backdrop of the ongoing Middle East conflict, Germany's GDP grew by 0.3% quarter-on-quarter, pointing to unexpectedly strong domestic demand. This development may heighten expectations for monetary policy adjustments from the ECB in the upcoming months, especially as inflation still brews below target. As no high-impact events are on the immediate horizon, market sentiment could remain stable unless further economic data shifts perceptions.
German economy defies Middle East war by growing in the second quarter
Germany's Q2 GDP grew 0.2% QoQ, defying Middle East war fears and soaring energy prices, driven by exports. ING notes this is the first time since pandemic lockdowns that the economy has avoided shrinking for four consecutive quarters, though the economy remains smaller than in late 2022. The outlook hinges on energy prices and conflict expansion, with low water levels adding supply-chain risk.