Bundesbank expects German economic recovery to gain momentum this spring

Germany expects weak first quarter growth followed by a dynamic spring rebound. Fiscal stimulus and government spending are set to drive the recovery soon.

Insights:
The Bundesbank announced in its monthly economic report today that the German economy is expected to experience weak expansion during the first quarter of 2026. A pickup is anticipated to begin in the spring, a development that the central bank attributes primarily to fiscal stimulus. This outlook for Germany DEDE is a critical indicator for the timing and composition of the recovery in Europe’s largest economy, which has faced three years of stagnation.
People walk next to a Doner kebab and Currywurst booth on the Kurfuerstendamm shopping street in Berlin, Germany, December 18, 2023. REUTERS/Lisi Niesner
People walk next to a Doner kebab and Currywurst booth on the Kurfuerstendamm shopping street in Berlin, Germany, December 18, 2023. REUTERS/Lisi Niesner
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