The Bundesbank predicts that Germany will grow by 0.6% in 2026, having revised its forecasts slightly downward in relation to last June’s calculations (0.7%), it was announced this Friday, the 19th.
“The German economy will progress again in 2026: initially in a restrained way, but then slowly improve,” Bundesbank President Joachim Nagel said in the new biannual forecasts for Germany.
Nagel predicts that Germany’s economic growth will strengthen from the second quarter of 2026, driven by public spending and exports.
Germany will grow 1.3% in 2027, against 1.2% predicted in June, and 1.1% in 2028.
The Bundesbank considers that the increase in German Government spending will be felt over the next year in economic growth.
Inflation will decline in the coming years more slowly than expected due to strong wage growth and because energy prices will fall more slowly, according to Germany’s central bank.
Harmonized consumer prices will rise in Germany by 2.3% in 2025, 2.2% in 2026, 2.1% in 2027 and 1.9% in 2028.