Germany's economy ministry raised the 2026 growth forecast to 1.3 percent from 0.5 percent and the 2027 forecast to 1.1 percent, saying the Iran war has hurt less than feared.
The German government raised its growth forecasts on Thursday. The economy ministry now expects 1.3 percent growth in 2026 and 1.1 percent in 2027, Reuters reported. In April it had expected 0.5 percent and 0.9 percent.
The ministry said the Iran war is not hurting the economy as much as feared. It also expects 0.6 percent growth in 2028, and inflation of 2.7 percent in 2026 and 3.0 percent in 2027. The economy grew 0.3 percent in the second quarter.
Economy Minister Katherina Reiche said Germany's economy is growing and that this is an important signal, but only a beginning. She said the task is to turn the initial recovery into genuine momentum.
Reuters said the official numbers confirm a report it published on 1 October and match the outlook of Germany's leading economic institutes. Higher prices linked to the Iran conflict and uncertainty from US tariffs remain in the background.
The figures are government forecasts, not measured results for 2026.
People Sentiments Positive
- Katherina Reiche said the economy is growing but that the recovery is only a beginning.