Germany raises 2026 growth forecast to 1.3% from 0.5%
The economy ministry also lifts its 2027 outlook to 1.1% and pencils in 0.6% growth for 2028
Published
Germany's economy ministry has raised its 2026 growth forecast to 1.3%, up from 0.5%, and lifted its 2027 projection to 1.1% from 0.9%. It now expects growth of 0.6% in 2028.
The revision follows IMF chief Kristalina Georgieva's remarks on October 7 describing Germany as a positive outlier among major economies. It also comes after a run of firmer domestic signals: September's composite PMI reading came in at 53.8, and industrial output rose 2%, far above what forecasters had expected. Factory orders fell 10.6% the same week, a far sharper drop than forecast, pointing to a split picture beneath the headline strength.
The upgrade arrives alongside continued political instability following the CDU's collapse in recent state elections. Taken together, the ministry's more upbeat forecast reads as an official endorsement of Germany's resilience rather than a resolution of the strains running through its data, its bond market and its politics. The growth upgrade, built on German-specific data, carries no direct channel into US markets.