German economy posts modest growth despite falling public confidence

Nexus Europa Newsroom
Posted Jul 30, 2026, 09:30 PM UTC · In the digest of 2026-07-30-2130
German economy posts modest growth despite falling public confidence
Photo: FAZ

Germany's GDP grew by 0.2% in the second quarter, yet public trust in state capacity dropped to a record low of 17% amid economic anxiety.

The German economy expanded by 0.2% in the second quarter, defying fears of stagnation triggered by elevated energy costs and international conflicts. While the modest uptick provided brief relief for Chancellor Friedrich Merz's administration, economists caution that a sustained recovery remains uncertain.

At the same time, public confidence in the state's problem-solving capacity has dropped to a historic low. According to a survey by the German Civil Servant Association, only 17% of citizens believe the government is capable of fulfilling its primary duties. Although concerns regarding migration have somewhat eased, persistent economic anxiety has emerged as the chief driver of distrust in public institutions.

Sources: FAZ

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