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German Economic Institutes Raise 2026 GDP Growth Forecast to 1.3%
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Several leading German economic research institutes have more than doubled their joint growth forecast for Germany in 2026, raising it to 1.3% from a spring prediction of 0.6%, according to a statement released on Thursday. The upward revision is attributed to the German economy performing better than expected in the first half of the year, driven by exports, manufacturing, and substantial public spending, which offset weak investment and consumption. The institutes also raised their 2027 forecast to 1.1% from 0.9%, but predict growth will slow to 0.4% in 2028 due to a shrinking labor force and declining potential output. The report notes that the recovery is expected to continue into 2027, supported by consumption and housing, before losing momentum. The overall recovery is described as still moderate.
Source report
BERLIN, Sept. 24 (Xinhua Finance) — Several leading German economic research institutes have more than doubled their joint growth forecast for the German economy this year, following better-than-expected performance in the first half of the year. However, the overall recovery remains moderate.
According to a statement released on Thursday:
- Germany's GDP is now projected to grow by 1.3% in 2026, up from the spring forecast of 0.6%.
- The forecast for 2027 has been raised from 0.9% to 1.1%.
- Growth is expected to slow to 0.4% in 2028.
The German economy outperformed expectations in the first half of the year, driven by exports, manufacturing, and substantial public spending. Strong global demand and the AI boom helped offset weak investment and consumption.
The institutes expect the economic recovery to continue into 2027, supported by consumption and housing. However, momentum is projected to fade by 2028, as a shrinking labor force and declining potential growth increasingly constrain output.
Editor: Wang Shurui
Source
新华财经Eastern