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[BUSINESS] · Germany · 30 sources

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Germany economic growth and pension projections

German economic research institutes have revised their growth forecasts upward, projecting a 1.3 percent expansion for 2026, followed by 1.1 percent in 2027, and a slowdown to 0.4 percent in 2028. This recovery is largely driven by public spending on infrastructure and defense, as well as increased demand in sectors like AI data centers and chemicals. However, experts warn of structural weaknesses and a rising public deficit, which is expected to grow from 4.1 percent this year to 4.7 percent by 2028.

In parallel, significant increases in pensions are anticipated for July 2027. The Leibniz Institute for Economic Research Halle (IWH) projects a rise of up to 4.7 percent, while the Deutsche Rentenversicherung estimates an increase of approximately 4.4 percent. Deka Bank also anticipates a rise of more than 4 percent, citing strong wage developments as a primary driver.

Entities

Deka Bank · Deutsche Rentenversicherung · Federation of German Industries · Friedrich Merz · German Federal Government · Germany · IfW Kiel · Ifo Institute · Kiel Institute for the World Economy · Leibniz Institute for Economic Research · Leibniz Institute for Economic Research Halle · OECD

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