Business Location Germany

German 2026 Economic Prognosis Revised Upward

One of Germany’s leading business think-tanks, the German Economic Institute in Cologne (IW), now predicts growth will come in at 1.2 percent this year.

The institute raised its previous forecast of 0.4 after Germany outperformed expectations in the first six months of the year. IW macro-economist Michael Grömling termed the German economy “more robust than anticipated” while cautioning that various challenges remain.

The institute also foresees one percent growth in GDP for 2027.

IW attributed the upswing to, among other things, increased defense spending and government impulses for consumers.