German government raises 2026, 2027 growth forecasts

The German government has revised its economic growth forecasts upwards for 2026 and 2027, according to sources familiar with the draft. The government now anticipates 1.3% growth in 2026 and 1.1% in 2027, a notable increase from its April projections of 0.5% for 2026 and 0.9% for 2027. For 2028, the government expects growth to be 0.6%.

Separately, Germany's leading economic institutes have also upgraded their outlooks. These institutes now forecast 1.3% growth for 2026, up from a previous estimate of 0.6%, and 1.1% for 2027, an increase from 0.9%. Their projection for 2028 growth stands at 0.4%. The institutes attribute these revised forecasts to a stronger-than-expected first half of the year.

The official presentation of the government's new forecasts is scheduled for October 8, while the institutes' forecasts will be presented on Thursday.