German economists forecast 1.3% growth in 2026 after years of stagnation

Leading German economic institutes now expect the economy to grow 1.3% in 2026 and 1.1% in 2027, well above spring forecasts, though recovery remains fragile as energy prices, skilled-worker shortages and debt weigh on growth. Oliver Holtemöller of the Leibniz Institute for Economic Research cited a resilient global economy, export gains as Hormuz blockades cut rival chemical supplies, AI data-center construction demand, and government infrastructure and defense spending as key drivers.