IMF raises Germany's 2026 growth forecast to 1.3%

The IMF raised Germany’s 2026 growth forecast to 1.3%, up from 0.6% or 0.7% in July, according to the two accounts.

It expects Germany’s economy to grow 1.1% in 2027, slightly more than previously forecast.

The more positive outlook matches forecasts released by Germany’s government last week.

Public investment and exports are helping drive the improvement, with spending on infrastructure and defence among the factors cited by the government.

The IMF also expects the eurozone to grow 1.1% in 2026, helped by strong recovery in Ireland and continued growth in Spain.

It raised its forecast for global growth to 3.1% in 2026, while keeping its 2027 estimate at 3.4%.

The IMF says economies have weathered higher energy prices, but warned that a sharp fall in technology shares if expectations for artificial intelligence disappoint could weigh on global growth.