US EditionGermany Cuts Growth Forecast as Recovery Slower than Hoped
Germany's 2026 GDP growth forecast cut to 1% due to manufacturing slump, high energy costs, and slow impact of public spending, with two-thirds of growth from fiscal stimulus.
- On Wednesday, 28 Jan 2026, the German government lowered its 2026 growth forecast to 1%, down from a prior official estimate of 1.3% made in October.
- Germany's recovery slowed due to a manufacturing slump, high energy prices, weak demand in China, US President Donald Trump's tariff pressure, and slow fiscal impact after eased debt rules.
- The economy ministry said about two-thirds of a percentage point of 2026 GDP growth comes from fiscal stimulus, but economists warned some spending fills short-term budget holes.
- The downgrade is a blow to hopes for a stronger turnaround in Europe's top export economy, and Merz faces mounting criticism over the slow start of his defence and infrastructure spending blitz.
- Finance Minister Lars Klingbeil said `We are pushing ahead with further structural reforms to modernise our country and increase our competitiveness`, including labour market reforms, energy cost measures, and spending on roads and bridges, digital infrastructure.
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30 Articles
Tagesschau
A noticeable economic upswing in Germany remains to be seen. The Federal Government expects this year only a low economic growth of 1.0 percent, according to Reiche, Minister for Economic Affairs.
The Killeen Daily Herald
Germany cuts growth forecast as recovery slower than hoped
The German government on Wednesday lowered its 2026 growth forecast to one percent, conceding that efforts to kickstart Europe's beleaguered top economy with vast public spending were moving slower than hoped.
In spite of an important recovery plan, the German government seems pessimistic with only 1% growth this year The German government has lowered its growth forecast on Wednesday to
Deutsche Welle
RTÉGermany lowers 2026 economic growth forecast to 1%
Germany trims this year's growth forecast to 1% as its economy is
BERLIN (AP) — The German government on Wednesday trimmed its 2026 forecast for the country’s economy, Europe’s biggest, as growth picks up more slowly than previously hoped. Chancellor Friedrich Merz’s government now expects gross domestic product to expand by about 1% this year and 1.3% in 2027, Economy Minister Katherina Reiche said. In October , it had predicted growth of 1.3% and 1.4% respectively. The economy returned to modest growth of 0.…
In the autumn, the Ministry of Economic Affairs assumed an increase in gross domestic product of 1.3 percent. Now, the forecast for 2026 falls to 1.0 percent.
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