Global economy

Germany raises 2026 economic growth forecast to 1.3%

The German government raised its forecast for growth in Europe’s largest economy in 2026 to 1.3%, up from its previous spring forecast of 0.5%. The new estimates are based on a recovery in exports, government investment and higher defense spending.

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Germany raises 2026 economic growth forecast to 1.3%

The German government raised its forecast for national economic growth in 2026 to 1.3%, up from its spring estimate of 0.5% growth for Europe’s largest economy.

Exports and investment support growth

The German Economy Ministry said the economy had proved more resilient than expected, reflecting the government’s improved assessment of its performance after the pressures caused by the repercussions of the war in Iran and the sharp rise in energy prices.

The growth forecast is based primarily on a recovery in German exports, along with government investment and higher defense spending.

Supply shortages boost foreign trade

Germany’s foreign trade sector benefited at times from supply shortages in global markets, as buyers moved to replenish their inventories of energy-intensive goods produced in Germany.

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