German Economic Institutes Raise Growth Forecasts

German economic institutes raised their growth forecasts for this year and next while business morale rose in September. Europe's largest economy shows resilience despite ongoing energy price shocks and structural challenges.

Vehicles move along during the early morning rush hour as sunrise haze illuminates the skyline in Berlin, Germany, June 24, 2026. REUTERS/Fabrizio Bensch

Germany's leading economic institutes lifted their growth forecasts for this year and next, with output set to expand 1.3% in 2026. The upward revision follows resilient business morale despite energy shocks linked to Iran. The forecasts offer relief to Chancellor Friedrich Merz following recent regional election setbacks.

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