German economy forecast to grow by 1 percent this year as industry leaders call for urgent reforms

Germany expects one percent economic growth this year despite high costs. Industry leaders now urge faster reforms to boost demand and global competitiveness.

The German Chamber of Industry and Commerce (DIHK) released a forecast today, February 17, 2026, projecting that the economy in Germany DEDE will grow by 1% in 2026. This figure represents an upward revision from the previous estimate of 0.7%. Alongside this forecast, the organization published its DIHK business climate index, stating that a year of reforms is essential to achieve a sustainable recovery for Europe's largest economy.
A double-decker bus passes the skyline and its prominent banking district in Frankfurt, Germany, on November 8, 2023. REUTERS/Kai Pfaffenbach
A double-decker bus passes the skyline and its prominent banking district in Frankfurt, Germany, on November 8, 2023. REUTERS/Kai Pfaffenbach
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