German institutes raise 2026 and 2027 economic growth forecasts, sources say

Germany's leading economic institutes have raised their forecasts for economic growth in Europe's largest economy for this year and next, sources told Reuters on Monday.

The German economy is forecast to grow 1.3% in 2026, compared with an earlier forecast of 0.6%, the sources said.

For 2027, the institutes forecast growth of 1.1%, up from an earlier forecast of 0.9%, according to the sources.

Handelsblatt first reported on the forecasts on Monday.

Germany's sluggish economy has been a big issue in the country's recent regional elections that have resulted in big gains for the far right and far left.

The forecasts are a joint effort by five prominent economic institutes — WI in Essen, the Ifo institute in Munich, IfW in Kiel, IWH in Halle and DIW in Berlin.