German Economy Defies Middle East War In First Quarter
2026-05-22·via All Articles on Seeking Alpha
Summary
Despite the war in the Middle East, the German economy had its best performance since the first quarter of 2025.
Inventory reductions weighed significantly on economic activity, shaving off 0.9 percentage points of quarterly GDP growth.
Looking ahead, the growth composition combined with the obvious fallout from the war in the Middle East, new uncertainty and higher energy prices does not bode well for the near-term outlook.
A strong start to the year has been confirmed. The German statistical office just confirmed that the economy grew by 0.3% quarter-on-quarter in the first three months of the year, defying the adverse impact of
