The German economy expanded by 0.2% quarter-on-quarter in Q3 2026, slowing from growth of 0.3% in Q2 but exceeding market expectations of a 0.1% increase, according to preliminary estimates. Final consumption expenditure edged up from the previous quarter, while capital formation declined. Meanwhile, the strong export momentum recorded in the first half of the year slowed considerably in Q3 2026. On a year-on-year basis, GDP grew by 1.2%, marking the strongest annual growth rate in four years. This compares with growth of 1.0% in Q2 and exceeds forecasts of 1.1%.