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[BUSINESS] · Germany · 34 sources

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Germany raises 2026 economic growth forecast to 1.3%

The German government has significantly raised its economic growth forecast for 2026 to 1.3%, up from the 0.5% projected in April. This revision is driven by strong exports, increased public investment, and higher defense spending. The government also improved its 2027 growth outlook to 1.1%, though it expects growth to slow to 0.6% by 2028. Economic Minister Katherina Reiche noted that the economy has proven more resilient to energy price shocks and geopolitical tensions, such as the conflict in the Middle East, than previously anticipated.

In August, German trade data showed a slight contraction, with exports falling 0.8% compared to July, primarily due to a 6.3% decline in shipments to the United States. Conversely, imports rose by 0.9%. Despite this monthly dip, Germany's trade surplus for August stood at €19.5 billion. On an annual basis, both exports and imports saw growth of 6.2% and 5.5%, respectively. While exports to China rose by 4.7% in August, imports from China increased by a larger 11.0%, widening the trade imbalance with the country.

Entities

BGA · China · Destatis · German Federal Government · Germany · Katherina Reiche · KfW Research · United States

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Sources

Exporte im August gesunken [www.oldenburger-onlinezeitung.de]