Business · Economy · 3 days ago
Germany raises 2026 growth forecast to 1.3%
Germany’s government now expects the economy to grow by 1.3% in 2026, up from its spring forecast of 0.5%.
It says the economy has proved more resilient than expected despite conflict in the Middle East and higher energy prices.
Exports and government spending, including on infrastructure and defence, are helping drive growth.
But household spending and private investment are expected to rise only slightly, so the recovery may not be broad or lasting.
The government forecasts growth of 1.1% in 2027 and 0.6% in 2028 as the boost from public spending and unusual export demand fades.
Business groups say the government needs to cut costs and bureaucracy, speed up procedures and modernise infrastructure.
The outlook also depends on how conflicts in the Middle East and Ukraine develop, which could affect energy prices and businesses.
Germany’s government raised its forecast for economic growth in 2026 to 1.3%, up from 0.5% in the spring.
The Economics Ministry said the economy had proved more resilient than expected despite the Iran conflict and higher energy prices.
Exports, public investment and higher defence spending are expected to support growth.
Business representatives warned that the upswing may be short-lived without economic reforms.
The government forecast growth of 1.1% in 2027 and 0.6% in 2028.
- Who
- Germany’s federal government, announced by Economics Minister Katherina Reiche.
- What
- The government raised its 2026 growth forecast to 1.3%, from 0.5%.
- When
- The forecast was announced on Thursday, October 8, 2026.
- Where
- Germany.
- Why
- The government said the economy was more resilient than expected; exports and public spending are expected to support growth.
German government
Business representatives
Outlook
German government
The government raised its 2026 growth forecast to 1.3% and said the economy had proved more resilient than expected.
Business representatives
Business representatives warned that the upswing may be short-lived and does not show a sustainable recovery.
Policy
German government
The government cited exports, public investment and higher defence spending as growth drivers.
Business representatives
Business representatives called for lower costs, less bureaucracy, faster procedures and modernised infrastructure.
Wir haben die Talsohle hinter uns gelassen, die deutsche Wirtschaft wächst wieder
Dieser Aufschwung ist teuer erkauft.
Die Entwicklung der Exporte bleibt ohne eigene Dynamik.
Kosten senken, Bürokratie abbauen, Verfahren beschleunigen, Infrastruktur modernisieren: In allen Feldern muss die Bundesregierung drei Gänge hochschalten.
The government forecast growth of 0.5% for 2026.
The government announced a comprehensive reform package.
A coalition committee ended without decisions.
The government raised its 2026 growth forecast to 1.3%.
- 2026 growth forecast
- 1.3%, up from 0.5%
- 2027 growth forecast
- 1.1%, up from 0.9%
- 2028 growth forecast
- 0.6%
- Exports
- Forecast to grow by 3.7% in 2026
- Private investment
- Forecast to increase by 0.2% in 2026
Sources
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