German government raises growth forecasts for 2026 and 2027
EWG•Germany’s government raised its growth forecasts to 1.3% for 2026 and 1.1% for 2027, from April forecasts of 0.5% and 0.9%. It expects inflation of 2.7% in 2026 and 3.0% in 2027.
1. Higher growth outlook
The German government raised its economic growth forecasts to 1.3% in 2026 and 1.1% in 2027. It had forecast growth of 0.5% and 0.9%, respectively, in April. For 2028, it expects growth of 0.6%.
2. Investment and exports
The government said the upturn is being driven primarily by debt-financed investments in infrastructure and strengthening the armed forces. It forecasts export growth of 3.7% this year, slowing to 2.1% in 2027 and 1.1% in 2028.
3. Inflation forecasts
The government expects inflation to reach 2.7% in 2026 and 3.0% in 2027, before easing to 2.2% in 2028. It said the war in the Middle East is affecting many consumers primarily through inflation.
