• Q1 GDP +0.3% vs +0.3% q/q prelim
• Prior +0.3%

The estimate here is very much old news as the focus turns to how the German economy is going to navigate the second and third quarters instead. That amid rising cost pressures and stagflation risks mounting in general. The PMI data for May here yesterday already points to overall business activity contracting in Q2 2026.

And the negative impact of that will be made worse once businesses have to pass on higher input costs to consumers, causing inflation pressures to become more widespread. It’s going to be a tough one, especially with the situation in the Middle East showing no signs of materially improving any time soon.

At the same time, the fiscal situation for Germany is also a cause for concern. So, that will also add to worries about the overall health of Europe’s largest economy in a rather sensitive time.