Die Zeit27 minutes agoBusiness2 min readGermany

The German economy is showing the first signs of recovery despite structural challenges

Quick Look

The German economy grew by an average of 0.35 percent in the first half of the year, the business climate is improving and industry is showing signs of recovery.
At the same time, significant funds are flowing into the defense industry, while job cuts and problems in the auto industry remain present in the public eye.
In addition, new allegations against Israeli Prime Minister Netanyahu for allegedly failing to pass on a warning about the Hamas attack on October 7, 2023 are being discussed.

AI-generated summary

Why It Matters

The German economy suffered from stagnant growth, high energy prices and structural problems in the automotive industry. At the same time, geopolitical tensions are increasing demand for military equipment. Elections are coming up in Israel, with Prime Minister Netanyahu under pressure over the Hamas attack on October 7, 2023.

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After years of bad news, there is suddenly reason for a little more optimism about the German economy. In the first half of the year it grew by an average of 0.35 percent, the business climate has recently improved and the industry is also showing signs of recovery. At the same time, a lot of money is flowing into the arms industry. In the future, air defense systems will be produced at the VW factory in Osnabrück, and a US-Israeli company wants to build cruise missiles in Saxony. In contrast, job cuts and the problems of the German auto industry continue to be present in public perception. Mark Schieritz, deputy head of the politics department at ZEIT, assesses whether we can already speak of an upswing, what role rearmament plays in it and how much of it can be attributed to the federal government's policy.

A new parliament will be elected in Israel in a few weeks. Shortly before the election, there are now new allegations against Prime Minister Benjamin Netanyahu: According to research by the Israeli newspaper Ha'aretz, the President of the United Arab Emirates is said to have warned him in a phone call before Hamas' terrorist attack on October 7, 2023 that Hamas was preparing a major operation against Israel. Netanyahu, however, is said not to have passed on the warning to the Israeli security forces. His office rejects the account as an “absolute lie.” How credible are the new allegations - and could they harm Netanyahu so close to the election? Steffi Hentschke explains this. She reports for ZEIT from Israel.

And otherwise? Historic success: the German women in the quarterfinals of the Basketball World Cup

Moderation and production: Rita Lauter

Editor: Philipp Moser

Collaboration: Emma Möllenbrock, Constanze Kainz, Sophia Boddenberg

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What to Watch

AI outlook — possibilities, not facts

The German economy will show similar or slightly improved growth in the second half of 2026 if current trends continue.
Likely · Within months
The allegations against Benjamin Netanyahu will influence Israel's campaign dynamics, but are unlikely to be enough to prevent his re-election.
Possible · Within weeks

Open Questions

How sustainable is the current economic growth in Germany?
To what extent is the defense industry contributing to the economic recovery?
Which specific political measures taken by the federal government have led to an improvement in the business climate?
How credible are the accusations against Netanyahu about not passing on the warning about the Hamas attack?