Germany Doubles 2026 Growth Forecast

Germany's IMK institute has raised its 2026 economic growth forecast to 1.3 percent from 0.6 percent. Stronger exports and higher government spending drove the upgrade.

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 IMK economic institute more than doubled its 2026 growth forecast to 1.3%, driven by stronger exports and higher defense spending. The upgrade follows similar revisions by other major domestic research institutes following a resilient first-half performance. Investors are weighing the fiscal stimulus against persistent domestic headwinds impacting household spending.

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