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Germany struggles with economic strain and rising AfD support

Germany's economy grew 0.2% last year as exports to China fell 9.7%, boosting far-right AfD support while Chancellor Merz pushes a

Updated 1 min read

Published by Agyata NewsroomEditorial policyCorrections

Key points

  • Germany's real GDP increased by only 0.2% last year according to the Federal Statistical Office.
  • Exports to China fell 9.7% in 2025 with vehicle shipments plunging by a third.
  • Venture-capital investment in Germany soared 44% to €5.8 billion in the first half of 2026.

Why it matters. The story matters because Germany's traditional export model is under strain, prompting a strategic pivot toward startups and advanced technologies to secure future economic growth and political stability.

Updated Sources: DW, Wikipedia: Germany, Wikipedia: Alternative for Germany

Germany's economy grew just 0.2% last year as exports to China dropped 9.7%, fueling rising support for the far-right AfD party which now leads all others in polls. Chancellor Friedrich Merz's government is countering this trend with a high-tech strategy targeting AI, quantum computing, and microelectronics to drive future growth. New data shows over 3,000 startups launched in the first half of 2026, with venture capital investment surging 44% to €5.8 billion.

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Germany struggles with economic strain and rising AfD support

Germany's export-led economic model is under severe strain due to persistently high energy prices and increasing competition from Chinese industrial rivals. Major German companies are losing market share as global costs rise, creating a difficult environment for job creation and economic growth. Concurrently, support for the far-right Alternative for Germany (AfD) party has climbed to a peak, driven by voter fears over the economic situation. Experts warn that without new growth sectors to alleviate these pressures, the political landscape may continue to shift toward the right.

DWWikipedia: GermanyWikipedia: Alternative for Germany

Sources

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