German government raises growth forecasts for 2026 and 2027
- On Thursday, the German government raised its 2026 economic growth forecast to 1.3%, up from 0.5% in April, as the Iran war's economic impact proved less severe than feared.
- Previous projections proved too pessimistic amid ongoing regional conflicts in the Middle East, which are affecting many consumers primarily through inflation rather than broader economic damage.
- Export growth is forecast at 3.7% this year, while inflation is expected to reach 2.7% in 2026 and 3.0% in 2027, before easing to 2.2% in 2028.
- Debt-Financed investments in infrastructure and strengthening of Germany's armed forces are driving the upturn, aligning with projections from the country's leading economic institutes.
- Chancellor Friedrich Merz welcomes the pickup, as Germany's sluggish economy proved a sore point during September's regional elections that resulted in gains for the far right and far left.
56 Articles
56 Articles
The government of Germany raised the economic projections for 2026 and 2027, assessing that the war in Iran is not damaging the country's economy as much as was feared. The Ministry of Economy now forecasts a growth of the Gross Domestic Product (GDP) of 1.3% in 2026 and 1.1% in 2027. In the projections released in April, the estimates were of expansion of 0.5% this year and 0.9% in the next. The new forecasts are in line with those of the main …
Iran war, Donald Trump's trade policy, tough competition from China: Germany's economy also suffers from such turbulence. Now it is better than expected - but is that permanent?Despite persistent crises with global impacts such as the Iran war, the Federal Government is clearly correcting its growth expectations for the current year.It now expects economic growth to be 1.3 percent in the current year.In April, it had reduced its expectations and…
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