Key facts
- The chamber raised its 2026 forecast to 1% from 0.3% and sees 2027 growth at 1%.
- The German government expects 1.3% growth in 2026 and 1.1% in 2027.
- 26% of 23,000 polled businesses rated their current situation good, up 3 points from early summer; 23% rated it poor.
- Germany's economy grew 0.2% in the third quarter, the chamber's statement said, despite higher prices from the Iran conflict.
- The statistics office said September's 10.5% rise in auto orders reflected weak orders in prior months.
- Overall industrial orders rose 4.4% in September versus a Reuters poll forecast of 4.8%.
The German Chamber of Commerce and Industry on November 5 raised its 2026 growth outlook for Europe's largest economy to 1% from 0.3%, saying debt-financed public spending was driving much of the expansion.
The chamber's chief executive, Helena Melnikov, said the government was spending on infrastructure and defense while exports provided some support. "We are still a long way from self-sustaining growth," she said in a statement.
In the chamber's poll of 23,000 German businesses, 26% rated their current business situation as good, up 3 percentage points from early summer, and 23% rated it as poor. Analysts broadly agree Germany is emerging from a prolonged slowdown, but many stop short of calling the recovery self-sustaining because private investment remains weak, Reuters reported.
The chamber sees 2027 growth at 1%, while the German government expects 1.3% for 2026 and 1.1% for 2027. The economy grew 0.2% in the third quarter despite higher prices fueled by the Iran conflict and uncertainty from trade tensions.
That growth is overshadowed by trouble in Germany's auto industry, which is contending with US tariffs, competition from cheaper Chinese imports and the cost of shifting to electric vehicles. Auto sector new orders rose 10.5% in September, but the statistics office said on November 5 that the gain reflected weak orders in previous months, caused in part by production changes and plant shutdowns over the summer holidays.
Auto orders contributed to a 4.4% rise in overall industrial orders on a seasonally and calendar-adjusted basis. A Reuters poll of analysts had pointed to a rise of 4.8%.