Business Location Germany
IMF Significantly Raises Forecast for German Growth
The International Monetary Fund (IMF) says the German economy will grow significantly faster this year than previously expected.
Oct 14, 2026
German economic growth in 2026 is now projected to reach 1.3 percent - nearly double the 0.7 percent forecast in July, the IMF announced.
For 2027, economists also now anticipate growth of 1.1 percent. That’s 0.1 percentage points higher than projected earlier.
The IMF’s outlook is in line with that of the German government, which published exactly the same forecast numbers last week.
“The significant upward revision of the IMF’s growth forecast signals an improved assessment of Germany as a business location,” says Thomas Bozoyan, an expert at Germany Trade & Invest. “Greater investment, robust economic development and a more positive European environment are strengthening the outlook for German and international companies. As Europe’s largest economy and one of the world’s leading industrial and innovation hubs, Germany – which also has reliable framework conditions, a strong industrial ecosystem and extensive international networks – continues to offer attractive prospects for international businesses looking to expand abroad.”
- Business Location Germany