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German Economic Institutes Raise 2026 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 follows stronger-than-expected economic performance 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 expect growth to slow to 0.4% in 2028 as a shrinking labor force and declining potential output increasingly constrain the economy. The recovery is expected to continue into 2027, supported by consumption and housing, before losing momentum. The report was published by Xinhua Finance on September 24.
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 in 2026, citing 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 0.6% forecast in spring. The institutes also raised their 2027 forecast from 0.9% to 1.1%, while growth in 2028 is expected to slow to 0.4%.
The German economy outperformed expectations in the first half of this 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 forecast 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
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German Institutes Double 2026 GDP Growth Forecast to 1.3% on Strong H1