The Bundesbank said that, driven by increased public spending on defense and infrastructure, the German economy will gradually recover next year and accelerate growth in 2027. The central bank indicated in a new forecast released on Friday that GDP will grow 0.6% in 2026, 1.3% in 2027, and 1.1% in 2028. Compared to the June forecast, the forecast for next year was slightly lowered, while the forecast for 2027 was slightly raised. Bundesbank Governor Joachim Nagel said in a statement, “Starting from the second quarter of 2026, economic growth will increase significantly, mainly driven by a recovery in government spending and exports.”

The Bundesbank said that, driven by increased public spending on defense and infrastructure, the German economy will gradually recover next year and accelerate growth in 2027. The central bank indicated in a new forecast released on Friday that GDP will grow 0.6% in 2026, 1.3% in 2027, and 1.1% in 2028. Compared to the June forecast, the forecast for next year was slightly lowered, while the forecast for 2027 was slightly raised. Bundesbank Governor Joachim Nagel said in a statement, “Starting from the second quarter of 2026, economic growth will increase significantly, mainly driven by a recovery in government spending and exports.”