According to J.P. Morgan's latest report, the German Choice Party's approval rating rose sharply in the Saxony-Anhalt election, which once raised market concerns about whether the Mertz administration would adjust the course of fiscal expansion and structural reforms. However, judging from the latest statements, the ruling coalition formed by the CDU/CSU and the Social Democratic Party still tends to stick to the established policies. According to the report, after the German economy experienced stagnation, the annualized GDP growth rate in the past three quarters was close to 1.5%. J.P. Morgan predicts that the growth rate will rise further to about 1.75% by mid-2027, then slow down as fiscal stimulus weakens. Government reforms are also expected to boost corporate investment, which has been slow to grow in Germany for almost a decade.

According to J.P. Morgan's latest report, the German Choice Party's approval rating rose sharply in the Saxony-Anhalt election, which once raised market concerns about whether the Mertz administration would adjust the course of fiscal expansion and structural reforms. However, judging from the latest statements, the ruling coalition formed by the CDU/CSU and the Social Democratic Party still tends to stick to the established policies. According to the report, after the German economy experienced stagnation, the annualized GDP growth rate in the past three quarters was close to 1.5%. J.P. Morgan predicts that the growth rate will rise further to about 1.75% by mid-2027, then slow down as fiscal stimulus weakens. Government reforms are also expected to boost corporate investment, which has been slow to grow in Germany for almost a decade.