German Economy Grows 0.3% in Q4, Strongest in Three Quarters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy GF?
Source: seekingalpha
- Economic Recovery: Germany's economy grew by 0.3% in Q4 2025, marking the strongest performance in three quarters and surpassing the forecast of 0.2%, indicating signs of economic recovery.
- Annual GDP Growth: Year-on-year GDP increased by 0.4%, the highest in three years, up from 0.3% in the previous three quarters, reflecting a shift towards accelerated growth after a period of stability.
- Stable Unemployment Rate: The seasonally adjusted unemployment rate in Germany held steady at 6.3% in January, showing no significant changes, which suggests stability in the labor market and supports ongoing economic recovery.
- Positive Market Reaction: The improvement in German economic data boosted market confidence, leading to gains in European markets, as investors remain optimistic about the eurozone's economic outlook, potentially influencing future monetary policy decisions.
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Analyst Views on GF
Wall Street analysts forecast GF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GF is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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0 Sell
Current: 11.940
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Current: 11.940
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About GF
The New Germany Fund, Inc. (the Fund) is a diversified, closed-end management investment company. The Fund seeks long-term capital appreciation primarily through investment in middle-market German equities. The focus of the Fund's investments lies within Germany. Under normal market conditions at least 80% of the Fund’s net assets are invested in equity or equity-linked securities. The Fund invests in range of sectors, which include aerospace and defense; auto components; automobiles; banks; building products; chemicals; electrical equipment; independent power and renewable electricity producers; insurance; Internet and direct marketing retail; information technology (IT) services, life sciences tools and services; metals and mining; real estate management and development; software; textiles, apparel and luxury goods; trading companies and distributors; diversified financial services; commercial services and supplies, and others. The Fund's investment advisor is DWS International GmbH.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Bond Yields Slightly Rise: The U.S. 10-year Treasury yield increased by 1 basis point to 4.29%, while Germany's and the UK's yields rose to 2.88% and 4.53%, respectively, signaling enhanced market confidence in economic prospects.
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See More
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- Annual GDP Growth: Year-on-year GDP increased by 0.4%, the highest in three years, up from 0.3% in the previous three quarters, reflecting a shift towards accelerated growth after a period of stability.
- Stable Unemployment Rate: The seasonally adjusted unemployment rate in Germany held steady at 6.3% in January, showing no significant changes, which suggests stability in the labor market and supports ongoing economic recovery.
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See More
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- Employment Market Changes: Private payroll employment in France decreased by 0.1%, reflecting the pressure of economic slowdown on the labor market, which may lead to a decline in consumer spending.
- Improving Euro Area Economic Sentiment: Despite the slowdown in France, economic sentiment in the Euro Area rose in January, suggesting increased investor confidence in future economic recovery, potentially boosting market activity.
- Retail Sales Data: Retail sales in Sweden rose by 1.5% year-over-year, indicating that consumer spending remains strong in certain regions, which could provide support for the regional economy.
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