GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
German institutes raise 2026 and 2027 economic growth forecasts, Handelsblatt reports - Finance news and analysis from Global Banking & Finance Review
Finance

German institutes raise 2026 and 2027 economic growth forecasts, Handelsblatt reports

Published by Global Banking & Finance Review

Posted on September 21, 2026

1 min read

· Last updated: September 21, 2026

Add as preferred source on Google
Finance Economy Germany Markets Economic Forecast

German Institutes Upgrade 2026 and 2027 Economic Growth Outlook

Revised Economic Forecasts for Germany

Overview of Updated Growth Projections

FRANKFURT, Sept 21 (Reuters) - Germany's leading economic institutes have raised their forecasts for economic growth in Europe's largest economy for this year and next, Handelsblatt reported on Monday.

2026 Economic Growth Forecast

• The German economy is forecast to grow 1.3% in 2026, compared with an earlier forecast of 0.6%, Handelsblatt reported citing unnamed sources.

2027 Economic Growth Forecast

• For 2027, they forecast growth of 1.1%, up from an earlier forecast of 0.9%.

Context and Implications

Political Impact of Economic Performance

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

Institutes Involved in the Forecast

Participating Economic Institutes

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

Response to Inquiries

• They didn't immediately respond to a request for comment.

(Reporting by Tom Sims; Editing by Toby Chopra)

Key Takeaways

  • The joint upgrade—from around 0.6% to 1.3% for 2026, and 0.9% to 1.1% for 2027—marks a significant upward revision driven by robust first‑half growth, boosted by exports and government spending (ifo.de).
  • Individually, the RWI confirmed the upgrades to 1.3% in 2026 and 1.1% in 2027, citing unexpectedly strong recovery in Q1 and Q2, while the Ifo Institute raised its own 2026 forecast to a similar range (1.4%) and 2027 to 1.2% (rwi-essen.de).
  • The forecast revisions contrast with earlier pessimism—spring projections had pegged growth at only 0.6% and 0.9%—highlighting the economy’s resilience amid structural challenges, energy price shocks, and geopolitical uncertainty (ifo.de).

References

Frequently Asked Questions

Why is Germany's economic outlook significant?
Germany's economic performance is crucial for the Eurozone and has influenced recent local elections and political dynamics.

Tags

Related Articles

Image for Air taxi maker Vertical taps former Airbus executive Fabrice Bregier as chair

Air taxi maker Vertical taps former Airbus executive Fabrice Bregier as chair

Image for Denmark says NATO shares responsibility for Arctic security under Greenland deal

Denmark says NATO shares responsibility for Arctic security under Greenland deal

Image for China's GAC plans to launch 12 electric and hybrid models in France by 2030

China's GAC plans to launch 12 electric and hybrid models in France by 2030

Image for Fed, BoE probe banks' exposure to trading firms after Jane Street loss, FT reports

Fed, BoE probe banks' exposure to trading firms after Jane Street loss, FT reports

Image for UK charges man over alleged Rwanda genocide offences

UK charges man over alleged Rwanda genocide offences

Image for Russia will have budget deficit not exceeding 3% of GDP in 2026, Finance Minister says

Russia will have budget deficit not exceeding 3% of GDP in 2026, Finance Minister says

More from Finance

Explore more articles in the Finance category

Image for UK indexes climb as oil prices retreat, banks lead gains
UK indexes climb as oil prices retreat, banks lead gains
Image for Analysis-Porsche's decline from crown jewel to millstone for parent Volkswagen
Analysis-Porsche's decline from crown jewel to millstone for parent Volkswagen
Image for Far-left leader pushing to lead Berlin says city has voted for change
Far-left leader pushing to lead Berlin says city has voted for change
Image for Global diesel prices hit record highs, further rises possible
Global diesel prices hit record highs, further rises possible
Image for A history of Warner Bros - from old Hollywood to streaming era
A history of Warner Bros - from old Hollywood to streaming era
Image for Chipmakers fuel global stock gains as oil retreats
Chipmakers fuel global stock gains as oil retreats
Image for Exclusive-Russia adapts fertilizer, coal terminals in Baltic, Arctic ports to export Black Sea grain
Exclusive-Russia adapts fertilizer, coal terminals in Baltic, Arctic ports to export Black Sea grain
Image for Oil price dips briefly below $100 on Saudi exports, hopes of US-Iran diplomacy
Oil price dips briefly below $100 on Saudi exports, hopes of US-Iran diplomacy
Image for Donatella Versace partners with Gen Z fashion retailer REVOLVE
Donatella Versace partners with Gen Z fashion retailer REVOLVE
Image for Houthis push for control of Yemen highlands as Trump is said to have called off strikes
Houthis push for control of Yemen highlands as Trump is said to have called off strikes
Image for Moscow oil refinery output halted after Sunday drone attack, sources say
Moscow oil refinery output halted after Sunday drone attack, sources say
Image for Poor data sharing undermining EU cyber defences, auditors say
Poor data sharing undermining EU cyber defences, auditors say
View All Finance Posts