Germany reduces economic growth projections amid global trade concerns

The German federal government has reduced its gross domestic product growth forecasts for 2026 and 2027, highlighting heightened uncertainty in global trade and a slower-than-expected impact from national economic and fiscal-policy measures. The German Economy Ministry, represented by Economy Minister katherina reiche, presented the revised figures on Wednesday, revealing that the government has trimmed its growth projection for 2026 to 1.0% from the previous estimate of 1.3%. For 2027, the growth forecast has been lowered to 1.3% from the 1.4% previously expected. These updated figures follow a 0.2% expansion in 2025, which ended two consecutive years of economic contraction in DE.