The economy ministry lifted Germany's 2026 growth forecast to 1.3 percent from 0.5 percent in April, and put 2027 growth at 1.1 percent, saying the Iran war has hurt less than feared.
The German government raised its economic growth forecasts on Thursday. Reuters reported that the economy ministry now expects 1.3 percent growth in 2026 and 1.1 percent in 2027, up from 0.5 percent and 0.9 percent in the April forecasts.
The ministry said the war involving Iran is not hurting the economy as much as feared. Reuters also reported a 2028 growth forecast of 0.6 percent, and inflation expectations of 2.7 percent in 2026 and 3.0 percent in 2027.
Economy Minister Katherina Reiche said Germany's economy is growing and that this is an important signal, but only the beginning. She said the task now is to turn the initial recovery into genuine momentum.
Reuters said the economy grew 0.3 percent in the second quarter despite higher prices linked to the Iran conflict and uncertainty from U.S. tariffs. The new official numbers match forecasts from Germany's leading economic institutes, Reuters reported. The October 8 release confirmed a Reuters report from October 1.
The figures are a forecast revision, not a final reading of 2026 output.
People Sentiments Positive
- Katherina Reiche said the economy is growing but that the recovery is only a beginning.