German institutes raise 2026 growth forecast but flag structural risks

German economic institutes have doubled their forecast for the country’s economic growth in 2026 to 1.3 per cent, DW Germany reported. The revised prediction reflects a more positive assessment of the growth outlook than the institutes’ earlier forecast, although the supplied material does not state the previous percentage. It also does not identify the institutes involved or provide a breakdown of the factors behind the change.

The experts caution that the improved forecast does not remove Germany’s structural difficulties. Their assessment, as reported by DW, is described as complicated, particularly because of uncertainty in the energy sector. The source material does not specify which energy-related developments are creating uncertainty, nor does it say how those risks might affect households, companies or public finances.

It also provides no details about expected inflation, employment, investment or trade. The forecast therefore combines a stronger near-term growth expectation with warnings about unresolved underlying problems. The 1.3 per cent figure is presented as the institutes’ prediction for 2026, but the available report does not indicate whether it refers to annual gross domestic product growth under a particular statistical measure.

DW Germany’s account contains no response from the German government or other economic bodies. It gives no further timetable for the institutes’ assessment beyond describing the forecast as applying to 2026.