German Think Tanks Double 2026 GDP Growth Forecast

Five leading German economic think tanks have doubled their GDP growth forecast for Germany for 2026, now predicting an uptick of 1.3 percent. This figure represents a significant increase from the 0.6 percent growth projected in the previous spring forecast.

In their joint report, titled "Recovery Under Structural Stress — Fiscal Policy on Slippery Ground," the DIW Berlin and four other institutes projected continued growth of 1.1 percent for 2027. However, the long-term outlook remains cautious, with growth expected to slow to 0.4 percent by 2028.

Despite the immediate upward revision, the institutes warned that the recovery is hampered by structural difficulties. Experts specifically highlighted ongoing uncertainty within the energy sector as a primary risk to the economic outlook.