German Institute Triples 2026 Growth Forecast

Germany's IW institute raised its 2026 growth forecast to 1.2 percent, up from 0.4 percent previously. Strong exports and government spending drove the upgrade, though momentum is expected to fade in the second half of the year.

The sun sets behind the skyline and the headquarter of the European Central Bank in Frankfurt, Germany, April 6, 2025.  REUTERS/Kai Pfaffenbach

Germany's economy will expand 1.2% in 2026, boosted by robust early exports and state spending, according to German Economic Institute data released Sunday morning. The updated figure triples the institute's previous 0.4% prediction issued in May. Stronger growth follows upward revisions from other domestic research centers after a resilient first half of the year.

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