German institutes double 2026 GDP growth forecast to 1.3% on exports and spending
Five leading German economic research institutes raised their joint 2026 GDP growth forecast for Germany to 1.3%, more than doubling the 0.6% spring projection. The upward revision, released on September 24, cites stronger-than-expected first-half performance driven by rising exports and increased government spending on defense, infrastructure, and climate initiatives. The Ifo Institute's September business expectations index rose to 90.4, its fifth consecutive monthly increase. The institutes project 1.1% growth in 2027 and 0.4% in 2028, warning that high energy prices and structural problems persist.
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German institutes raise 2026 GDP growth forecast to 1.3% on exports, spending
Five leading German economic research institutes published a joint economic forecast report on the 24th, significantly raising their 2026 GDP growth projection for Germany to 1.3%, up from the 0.6% forecast in spring. The report attributes the improved outlook to a stronger-than-expected recovery, supported by rising exports and increased government spending on defense, infrastructure, and climate initiatives. It also notes that the continued development of artificial intelligence could provide additional momentum. The institutes forecast that the recovery will continue over the next two years, with GDP growth of 1.1% in 2027 and 0.4% in 2028. However, the report warns that high energy prices and structural problems continue to weigh on the German economy. The joint report, published twice a year in spring and autumn, is compiled by the German Institute for Economic Research, the Ifo Institute, the Kiel Institute for the World Economy, the Halle Institute for Economic Research, and the Leibniz Institute for Economic Research, and serves as a key reference for German federal economic policy.
Read sourceGerman Economic Institutes Double 2026 GDP Growth Forecast, Ifo Confidence Hits 2025 High
Germany's leading economic research institutes have more than doubled their joint forecast for 2026 GDP growth to 1.3%, up from a spring prediction of 0.6%, citing stronger-than-expected economic performance in the first half of the year. The Ifo Institute's September business expectations index rose to 90.4, its fifth consecutive monthly increase and above the consensus forecast of 89.3. Ifo President Clemens Fuest described the recovery as 'broad-based' but cautioned it is not a strong rebound, only an improvement over the previous period of stagnation. The institutes, which produce the forecast twice yearly for the German Economy Ministry, expect the recovery to continue into 2027 with 1.1% growth driven by consumption and housing, before slowing to 0.4% in 2028 as the labor force shrinks and potential growth capacity declines. The forecast was compiled by DIW Berlin, Ifo Institute, Kiel Institute for the World Economy, IWH, and RWI.
Read sourceGerman Economic Institutes Double 2026 GDP Forecast, Ifo Index Hits 2025 High
Germany's leading economic research institutes have more than doubled their joint forecast for 2026 GDP growth, citing stronger-than-expected economic performance in the first half of the year. The institutes now predict the German economy will grow by 1.3% in 2026, up from a spring forecast of 0.6%. The upward revision was announced alongside the Ifo Institute's September business expectations index, which rose to 90.4 from a revised 89 in August, marking the fifth consecutive monthly increase and exceeding the consensus forecast of 89.3. The institutes, which include DIW Berlin, Ifo, the Kiel Institute, IWH, and RWI, also forecast that the economic recovery will continue into 2027 with 1.1% growth, driven mainly by consumption and housing. However, they expect growth to slow to 0.4% by 2028 as the labor force shrinks and potential growth capacity declines. The joint economic forecast is prepared twice a year for the German Economics Ministry.
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German Economic Institutes Double 2026 GDP Growth Forecast, Business Confidence Rises
Major German economic research institutes have more than doubled their joint forecast for Germany's 2026 economic growth, citing stronger-than-expected performance in the first half of the year. The institutes, including DIW Berlin, Ifo Institute, Kiel Institute for the World Economy, IWH, and RWI, now expect GDP to grow by 1.3% in 2026, up from a spring forecast of 0.6%. The Ifo Institute's September business expectations index rose to 90.4, its fifth consecutive monthly increase and above the consensus forecast of 89.3. The institutes project the recovery to continue into 2027 with 1.1% growth, driven mainly by consumption and housing. However, growth is expected to slow to 0.4% by 2028 as the labor force shrinks and potential output capacity declines. The joint forecast is prepared twice a year for the German Economics Ministry.
Read sourceGerman Economic Institutes Double 2026 GDP Growth Forecast, Ifo Index Hits 2025 High
Leading German economic research institutes have more than doubled their joint forecast for Germany's 2026 economic growth, citing stronger-than-expected performance in the first half of the year. The institutes now project GDP growth of 1.3% in 2026, up from a spring forecast of 0.6%. The Ifo Institute's business expectations index rose for the fifth consecutive month to 90.4 in September, exceeding the consensus forecast of 89.3. The institutes, which include DIW Berlin, Ifo, the Kiel Institute, IWH, and RWI, also forecast that the recovery will continue into 2027 with growth of 1.1%, driven mainly by consumption and housing. However, growth is expected to slow to 0.4% by 2028 as a shrinking labor force and declining potential output constrain the economy. The joint forecast is prepared twice a year for the German Economics Ministry.
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