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German Government Cuts 2026, 2027 Growth Forecasts Due to Rising ...

The government cites slower policy impact and rising external risks including energy costs and global competition, adjusting growth to 1% for 2026 from an earlier 1.3% forecast.

  • On Wednesday, the German government trimmed its 2026 forecast as growth picked up more slowly than hoped and now expects about 1% this year and 1.3% in 2027.
  • Rising external risks include competition from Chinese companies, higher energy costs after Russia's invasion of Ukraine, and U.S. President Donald Trump's tariffs, Economy Minister Katherina Reiche said.
  • The government launched a programme including a 500 billion-euro fund to pour money into infrastructure over 12 years and is subsidising energy prices for heavy industry, cutting red tape and speeding digitisation.
  • Preliminary official figures show the economy returned to modest growth of 0.2% last year after shrinking for two years, and Economy Minister Katherina Reiche said data points to a clear recovery.
  • Germany's exporters face heightened uncertainty given the revision, as October projections had predicted growth of 1.3% and 1.4%, underscoring the shifted outlook.
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Germany trims this year's growth forecast to 1% as its economy is slow to gather pace

The German government has trimmed its 2026 forecast for the country’s economy, Europe’s biggest, as growth picks up more slowly than previously hoped.

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berliner-sonntagsblatt.deberliner-sonntagsblatt.de
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epochtimes.deepochtimes.de

The growth prospects for the German economy are apparently deteriorating further. This is according to the German government's new economic forecast, reported by the Handelsblatt newspaper. Economics Minister Katherina Reiche (CDU) will present the forecast on Wednesday as part of the annual economic report. Gross domestic product (GDP) is now expected to grow by only one percent in 2026. Last autumn, the forecast was still at 1.3 percent. GDP …

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berliner-sonntagsblatt.de broke the news in on Tuesday, January 27, 2026.
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