The economy ministry raised Germany's 2026 growth forecast to 1.3 percent from 0.5 percent in April and put 2027 at 1.1 percent.
The German government raised its 2026 growth forecast to 1.3 percent from 0.5 percent in April, and its 2027 forecast to 1.1 percent from 0.9 percent, the economy ministry said on Thursday, Reuters reported. It expects 0.6 percent growth in 2028. The ministry said the Iran war is not hurting the economy as much as feared.
Economy Minister Katherina Reiche said growth was an important signal but only a beginning. She said growth must become self-sustaining and reforms must continue. The economy grew 0.3 percent in the second quarter.
The ministry expects export growth of 3.7 percent this year, then 2.1 percent in 2027 and 1.1 percent in 2028. It expects inflation of 2.7 percent in 2026 and 3.0 percent in 2027. German inflation rose to 3.3 percent in September.
Reuters said the upturn is driven mainly by debt-financed infrastructure and defence spending. Further outcomes depend on the Middle East and Ukraine wars.
This is a forecast revision, not a measured full-year result. August trade figures published separately are a different release.
People Sentiments Mixed
- Katherina Reiche said the economy is growing but the recovery is only a beginning.
- She said growth must become self-sustaining and reforms must continue.