German Q2 GDP Revised Up to 0.3%, Ifo Business Climate Hits One-Year High

Germany's Federal Statistical Office (Destatis) on August 25 revised second-quarter GDP growth up to 0.3% quarter-on-quarter (from a preliminary 0.2%) and 1.0% year-on-year (from 0.9%), driven by a rebound in exports (+2.0%) and manufacturing output (+0.9%). Separately, the Ifo Institute's business climate index rose to 88.8 in August from 86.7 in July — beating the 87.2 forecast and marking a fourth consecutive monthly increase to a one-year high. The figures mark the clearest sign yet of a turnaround after three years of near-stagnation, though the federal government still expects only 0.5% full-year 2026 growth, down from an earlier 1.0% forecast, citing energy-price pressure from the Middle East.