The economy ministry raised Germany's 2026 growth forecast to 1.3 percent from 0.5 percent in April, and its 2027 forecast to 1.1 percent.
Germany's economy ministry on Thursday raised its growth forecasts, saying the Iran war is not hurting the economy as much as feared. The government now expects growth of 1.3 percent in 2026 and 1.1 percent in 2027, up from 0.5 percent and 0.9 percent in its April forecasts.
The revision confirms a Reuters report from October 1. The ministry said the economy has shown resilience despite higher prices linked to the Iran conflict and uncertainty from US tariffs, and that output grew 0.3 percent in the second quarter.
For 2028 the government expects growth of 0.6 percent. It forecasts inflation of 2.7 percent in 2026 and 3.0 percent in 2027.
Reuters noted that any pickup would be welcomed by Chancellor Friedrich Merz after a sluggish economy became a sore point in September regional elections that produced large gains for the far right and far left.
The figures are official forecasts, not outcomes. The ministry did not publish a full sector breakdown in the Reuters report.