Germany’s leading economic research institutes nearly doubled their 2026 GDP growth forecast to 1.3%, up from 0.6%, signaling a shift in the country’s economic outlook. The revision, announced on Sunday, also raised the 2027 growth projection from 0.9% to 1.1% wnp.pl.
The upward adjustment follows recent improvements in business sentiment. The Ifo economic climate index rose to 89.9 points in September from 88.8, with the expectations subindex climbing to 90.4 and the current conditions index reaching 89.5 wnp.pl. The OECD also lifted its 2026 growth estimate to just over 1%.
The institutes noted that the recovery remains narrowly based, driven by public spending, investment, and a modest pickup in consumption, while industry continues to face high energy costs and structural challenges. Inflation is projected at 2.8% in 2026 and 3.2% in 2027, with growth expected to slow to 0.4% in 2028 wnp.pl.
