German industry showed growth amid possible increase in duties from US

German industrial production showed unexpected growth in May. According to Bloomberg experts, the increase in output was driven by companies' efforts to accelerate shipments to the US ahead of potential higher tariffs.

Data from Germany's Federal Statistical Office showed production volumes rose 1.2% from April. The figures were released by the government agency on Monday. The current indicators contradict forecasts by economists surveyed by Bloomberg, who had projected a 0.2% decline. Growth was recorded in automotive, pharmaceutical, and energy industries.

Bundesbank President Joachim Nagel stated the current situation remains unstable, with possibilities for either escalation or resolution of tensions at any moment. He warned that worsening trade tensions could reduce the country's GDP by up to 1.5 percentage points by 2027. However, he noted that due to early-year growth, a slight economic expansion in 2025 remains possible.