Germany's government will raise its 2026 growth forecast to 1.3% from 0.5%, a government source told Reuters, citing stronger-than-expected first-half performance. The 2027 outlook also improves, and the revised figures are due for formal publication on October 8.
Germany's government plans to raise its 2026 growth forecast to 1.3% from a previous estimate of 0.5%, a government source told Reuters on Friday. The source attributed the revision to unexpectedly strong economic performance in the first half of the year.
The outlook for 2027 also improves, rising to 1.1% from 0.9% in the April projections. The new figures align with projections from Germany's leading economic institutes, published at the end of September. The government will publish them formally on October 8.
Recovery still narrow
Even so, the source stressed the pickup has yet to broaden. A government source told Reuters: "private consumption and corporate investment are developing only sluggishly", while structural problems affecting Germany's business environment persist. The economy ministry directed Reuters to next week's release and declined to comment further.
Fiscal measures add to the outlook
Fiscal measures introduced so far are expected to raise GDP by 1% by the end of 2027, according to the source. For 2028, the government expects growth of 0.6%, with the public sector remaining a driver of growth, though to a lesser extent than in previous years.
Sources: Economy News, Economic Indicators News
Trading involves risk.
Risk Disclaimer
