The Institute of German Economy (IW) triples its growth forecast for this year. Instead of 0.4 percent, an increase of 1.2 percent is now expected, as stated in the autumn forecast, which was available to the news agency Reuters on Sunday in advance. The main reason for this is a surprisingly good first half-year. The debt-financed special pot for the modernization of the infrastructure was also available for the first time throughout the year.
Economic researchers now expect 1.2% growth for Germany. Much more than just recently. They also see positive next year. Two years of growth are already a success. But risks remain.
The IW now expects 1.2 percent growth in 2026 instead of 0.4. A strong first half of the year and state investments raise the forecast, the construction crisis and high energy prices remain burdensome.