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German institutes raise 2026 and 2027 economic growth forecasts, sources say - Finance news and analysis from Global Banking & Finance Review
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German institutes raise 2026 and 2027 economic growth forecasts, sources say

Published by Global Banking & Finance Review

Posted on September 22, 2026

1 min read

· Last updated: September 22, 2026

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German Institutes Announce Higher Economic Growth Forecasts for 2026 and 2027

Revised Economic Growth Projections for Germany

By Klaus Lauer

Updated Forecasts for 2026 and 2027

BERLIN, Sept 22 (Reuters) - 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.

2026 Growth Outlook

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

2027 Growth Outlook

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

Media Coverage of the Forecasts

Handelsblatt first reported on the forecasts on Monday.

Political and Institutional Context

Economic Impact on Regional Elections

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.

Institutes Involved in the Forecast

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.  

Reporting and Editorial Credits

(Reporting by Klaus Lauer, writing by Maria MartinezEditing by Ludwig Burger)

Key Takeaways

  • Economic institutes raised their 2026 growth forecast to 1.3%, nearly double the prior 0.6% estimate, signaling a more optimistic outlook (investing.com).
  • 2027 growth forecast was lifted to 1.1%, up from 0.9%, reflecting improved momentum beyond this year (marketscreener.com).
  • The upward revisions stem from stronger-than-expected exports, robust first-half activity, and elevated government spending—echoed by individual institute updates such as IMK and IW raising their outlooks as well (investing.com).

References

Frequently Asked Questions

What recent events have made the German economic outlook significant?
Germany's sluggish economy has been a key issue in recent regional elections, impacting political outcomes.

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