Overview
- Brussels now projects Germany’s GDP to grow 1.2% in 2026, up from a 1.1% spring estimate.
- The EU-wide 2026 forecast stands at 1.4% and the euro area at 1.2%, placing Germany slightly below the EU average.
- The Commission also revises Germany’s 2025 outlook to 0.2% growth after previously expecting stagnation.
- Officials cite firmer business surveys, a robust labor market, rising purchasing power and favorable financing conditions as supports for a moderate upturn.
- Forecasts diverge: the IMF and Germany’s economic advisory council see roughly 0.9% growth for 2026, the government targets 1.3%, and business groups flag structural drags including energy costs, social contributions and bureaucracy.