Germany Raises 2026 Growth Forecast to 1.3 Percent

Germany raised its 2026 economic growth forecast to 1.3 percent following a stronger than expected first half. Officials noted that persistent structural challenges and sluggish private consumption remain key concerns.

FILE PHOTO: The famous skyline with its banking district is pictured in early evening next to the Main River in Frankfurt, Germany, January 19, 2016. REUTERS/Kai Pfaffenbach/File Photo

Germany will raise its economic growth forecasts to 1.3% for 2026 and 1.1% for 2027, driven by an unexpectedly strong first-half performance, a government source said on Friday. The upgrade marks a notable upward revision from April projections of 0.5% for 2026 and 0.9% for 2027. Investors are weighing the near-term momentum against persistent structural headwinds facing the eurozone's largest economy.

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