Key facts
- Council chair Monika Schnitzer said the upgrade reflected a quicker-than-expected recovery from energy shocks created by the Iran war.
- Schnitzer said the council found federal projected revenue would not cover planned long-term expenditure.
- Chancellor Friedrich Merz said his government would do everything in its power to maintain Germany's top AAA credit rating.
- Schnitzer said reversing the government's reliance on debt financing will require difficult decisions.
Germany's Council of Economic Experts revised up its growth forecasts for Europe's largest economy, council chair Monika Schnitzer said on November 11, 2026, pointing to a quicker-than-expected recovery from the energy shocks created by the Iran war.
Speaking as she handed the council's annual report to Chancellor Friedrich Merz in Berlin, Schnitzer said: "We are seeing a clear economic upturn, driven by surprisingly strong exports and high levels of government spending." She did not give the exact figures.
Merz said the council had revised its forecasts to around 1%, an upswing he said is expected to continue into the coming year. "Given the many crises in Germany, we didn't necessarily expect to be able to pull that off," he said.
Alongside record spending on infrastructure and defense, Merz has pledged structural reforms to safeguard public finances, including an overhaul of the pension system. Schnitzer warned that the council found the federal government's projected revenue would not be enough to cover its planned expenditure in the long term, and that reversing the government's reliance on debt financing will require difficult decisions.
Merz said his government was fully aware of the funding challenges facing the country and would do everything in its power to maintain its top AAA credit rating.