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A number of major German economic research institutes released fall forecasts on the 3rd, raising the German economic growth forecast for 2026, and believe that the recovery in exports and increased government spending are driving the gradual recovery of the economy. The Munich Institute for Economic Research predicts that Germany's GDP will grow by 1.4% this year, higher than the 0.8% forecast for summer; at the same time, the 2027 economic growth forecast was raised to 1.2% from 0.8% previously. The agency believes that the war in the Middle East led to a sharp rise in energy prices, and low inland river levels have dragged down the German economy; however, the increase in overseas industrial demand and the expansion of government spending on infrastructure, defense and other fields have offset these negative effects to a certain extent. Germany's Kiel Institute for World Economics and the Leibniz Institute for Economic Research each forecast that the German economy will grow by 1.3% this year, up 0.5 percentage points from the previous forecast. Both agencies pointed out that this increase was mainly driven by foreign trade, and German export growth in the first half of the year exceeded expectations.
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A number of major German economic research institutes released fall forecasts on the 3rd, raising the German economic growth forecast for 2026, and believe that the recovery in exports and increased government spending are driving the gradual recovery of the economy. The Munich Institute for Economic Research predicts that Germany's GDP will grow by 1.4% this year, higher than the 0.8% forecast for summer; at the same time, the 2027 economic growth forecast was raised to 1.2% from 0.8% previously. The agency believes that the war in the Middle East led to a sharp rise in energy prices, and low inland river levels have dragged down the German economy; however, the increase in overseas industrial demand and the expansion of government spending on infrastructure, defense and other fields have offset these negative effects to a certain extent. Germany's Kiel Institute for World Economics and the Leibniz Institute for Economic Research each forecast that the German economy will grow by 1.3% this year, up 0.5 percentage points from the previous forecast. Both agencies pointed out that this increase was mainly driven by foreign trade, and German export growth in the first half of the year exceeded expectations.
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