Germany economy at a glance

Latest figures for Germany: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open Germany on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	2.8%	October 2026	3.3% September 2026
Core inflation (excluding food and energy)	2.3%	October 2026	2.5% September 2026
Real GDP growth (year on year)	1.2%	Q3 2026	1.0% Q2 2026
Policy rate (European Central Bank)	2.50%	November 2026	2.50% October 2026
Unemployment rate	4.1%	September 2026	4.1% August 2026
10-year government bond yield	3.42%	October 2026	3.47% September 2026
Manufacturing PMI (HCOB / S&P Global Germany Manufacturing PMI (final))	54.2	October 2026	53.9 September 2026
Retail sales (year on year)	−2.4%	September 2026	−0.3% August 2026
Industrial production (year on year)	0.4%	August 2026	−2.5% July 2026
Wages (year on year)	4.1%	Q2 2026	4.1% Q1 2026
House prices (year on year)	0.6%	Q2 2026	1.4% Q1 2026
Stock market (DAX 40)	26,325	November 2026	+10.4% over 12 months

Questions and answers

What is the inflation rate in Germany?

Germany's annual inflation rate was 2.8% in October 2026, down from 3.3% in September 2026.

What is the interest rate in Germany?

The European Central Bank deposit facility rate is 2.50% (as of November 2026). The next rate decision is due on 17 December 2026.

How fast is Germany's economy growing?

Germany's real GDP grew 1.2% year on year in Q3 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 1.3% in 2026 and 1.1% in 2027.

What is the unemployment rate in Germany?

Germany's unemployment rate was 4.1% in September 2026, unchanged from August 2026.

What is Germany's 10-year government bond yield?

Germany's 10-year government bond yield averaged 3.42% in October 2026.

How much government debt does Germany have?

Germany's government debt is about 63.5% of GDP (latest annual figure), with a budget deficit of 2.7% of GDP.

What is Germany's credit rating?

Germany's sovereign credit ratings: S&P AAA, Moody's Aaa, Fitch AAA.

What is the VAT rate in Germany?

Germany's standard VAT rate is 19% (2026 rules).

What is the corporate tax rate in Germany?

Germany's corporate income tax rate is 30.1% (2026 rules).

Who leads Germany?

Germany is led by Chancellor Friedrich Merz (CDU); President Frank-Walter Steinmeier (head of state). Next election: Federal (Bundestag) election due by early 2029; next big state test is North Rhine-Westphalia in spring 2027.

Outlook

The IMF (Oct 2026 WEO) and the federal government both expect 1.3% GDP growth in 2026 and about 1.1% in 2027, with exports and public defence and infrastructure spending as the main supports and a manufacturing PMI at a four-year high. Downside risks are a renewed energy-price spike from the Middle East conflict, which keeps inflation near 3% and consumer confidence weak, coalition instability that could stall pension and labour reforms, and US trade policy; Fitch and S&P expect deficits of 3.7% of GDP or more to push debt above 70% of GDP by 2029.

Why Germany matters for the world economy

Germany is the euro area's largest economy and the hub of a central European manufacturing supply chain, so its industrial cycle moves demand for intermediate goods in Poland, Czechia, Austria, Hungary, the Netherlands and Italy. Its fiscal turn, with a EUR 500bn infrastructure fund and defence spending heading above EUR 100bn a year, is lifting Bund supply and yields and supporting orders across European defence and engineering firms. Germany is highly exposed to the Middle East energy shock and to US tariffs on cars and machinery, and a shift of export share toward China and away from the US changes who feels its slowdowns. Political fragmentation, with a strong AfD, is a growing risk to EU-level decision-making on budgets, Ukraine and trade.

Politics

Merz's CDU/CSU-SPD coalition is under strain after heavy September state-election defeats: the AfD won Saxony-Anhalt with about 44% and topped Mecklenburg-Vorpommern, where the CDU fell out of parliament, while the Left won Berlin. National polls (INSA, early Oct) show the AfD near 30% against roughly 17-18% for the CDU/CSU, and SPD labour minister Baerbel Bas resigned on 12 Oct, complicating pension and labour-market reforms. Fiscal policy stays expansionary, with record borrowing and defence spending rising to about EUR 109bn in the 2027 draft budget.

System: Federal parliamentary republic.

Economy and taxes

GDP: US$5,051 billion
Population: 83.5 million
Government debt: 63.5% of GDP
Budget balance: −2.7% of GDP
Current account: 4.4% of GDP
Exports: 40.4% of GDP
Main exports: Motor vehicles and parts, machinery, chemicals and pharmaceuticals, electrical and electronic equipment
Top export markets: United States (9.3%), France (7.5%), Netherlands (7.2%), Poland (6.4%), Italy (5.3%)
IMF growth forecast: 1.3% in 2026, 1.1% in 2027
IMF inflation forecast: 2.7% in 2026, 3.1% in 2027
Currency: EUR
Freelancer tax: A self-employed person earning the average wage (EUR 64,441 a year) pays about 37.9% of it in income tax and social contributions (2026 rules)
Top income tax rate: 47.5%
Gold reserves: 3,349.1 tonnes (September 2026)
Energy self-sufficiency: 29% (2024)

Recent news

2 November 2026 IG Metall starts warning strikes as pay talks for 3.7 million workers stall The Local
Germany's metalworkers' union began warning strikes in several states after its no-strike period ended, seeking a 5% rise and job guarantees, while employers offer a one-off payment and a 1.3% rise from 2028. The Verdi union also called strikes at private banks.
30 October 2026 German economy grows 0.2% in the third quarter as exports lose steam Destatis
Destatis said output rose 0.2% from the second quarter and was 1.2% higher than a year earlier after calendar adjustment. Household and government spending edged up, but investment fell and the strong export growth of the first half slowed noticeably.
30 October 2026 German inflation falls to 2.8% in October as energy price rises slow Destatis
Consumer prices were 2.8% higher than a year earlier in October, down from 3.3% in September, and fell 0.2% on the month. Energy inflation eased to 12.2% from 14.9%, and core inflation, which leaves out food and energy, slowed to 2.1% from 2.4%.
30 October 2026 Number of jobless Germans rises to 3.02 million, the most since 2011 Trading Economics
Seasonally adjusted unemployment rose by 4,000 to 3.016 million in October, the highest since March 2011, while the jobless rate held at 6.4%. The rise was smaller than expected, and the unadjusted count stayed below 3 million for a second month.
29 October 2026 ECB holds rates at 2.50% as Lagarde says she will leave early in February European Central Bank
The ECB kept its deposit rate at 2.50% after two hikes since June, warning that rising energy costs raise inflation risks and weigh on growth. Lagarde hinted that tighter policy is still the likely direction and said she will step down after the February 2027 meeting, about eight months before her term ends.
26 October 2026 German business morale edges up again in October ifo Institute
The ifo business climate index rose to 90.2 from 89.9 as companies grew more optimistic about the coming months, although they judged their current situation slightly worse. Better expectations alone drove the rise, a sign firms see the current weakness as temporary.

Headlines and summaries are compiled daily from the linked reports with AI assistance.