Key facts
- German economic institutes have raised their forecasts for economic growth in 2026 and 2027.
- The 2026 growth forecast was raised to 1.3% from 0.6%.
- The 2027 growth forecast was raised to 1.1% from 0.9%.
- Growth is expected to be only 0.4% in 2028.
- The forecasts are a joint effort by five prominent economic institutes: RWI, Ifo, IfW, IWH, and DIW.
- The official presentation of the forecasts is scheduled for Thursday.
Germany's leading economic institutes have revised their economic growth forecasts upward for 2026 and 2027, signaling a more optimistic outlook than previously anticipated, according to sources familiar with the matter. The updated projections, set to be officially presented on Thursday, indicate expected growth of 1.3% in 2026, a significant increase from the prior forecast of 0.6%. For 2027, the institutes now project 1.1% growth, up from 0.9%. However, the outlook for 2028 remains subdued, with an expected growth rate of only 0.4%. These revised forecasts come after a stronger-than-expected first half of the year for Europe's largest economy. The sluggishness of the German economy has been a prominent issue in recent regional elections, which saw substantial gains for far-right and far-left parties. The joint forecast effort involves five prominent economic institutes: RWI in Essen, the Ifo institute in Munich, IfW in Kiel, IWH in Halle, and DIW in Berlin.