The German economy grew for the first time in three years in 2025, although at a modest pace, as consumer and ​government spending surge begin to fuel a ‍sluggish recovery.

Europe's biggest economy became stuck in stagnation when its vast industrial sector got priced out of key export markets, and consumers chose to save rather than spend.

Chancellor Friedrich Merz has launched a huge β€Œspending plan to boost economic prospects, but it is taking time to feed into the ‍economy.

"After two years of recession, the German economy edged back into growth.

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