Germany Raises Growth Forecasts Amid Budget Warnings
German economic advisors upgraded growth forecasts for the country while warning that policymakers must address looming budget deficits. The panel urged spending curbs on defence and pensions to safeguard public finances.
Germany's Council of Economic Experts raised its 2026 growth forecast to 1.3% on Wednesday, citing stronger exports and government spending. The revision more than doubles the panel's previous 0.5% estimate from May for Europe's largest economy. The updated outlook offers welcome relief to businesses, though advisors warn mounting fiscal deficits require immediate spending curbs.
