German Economic Institutes Raise 2026 Growth Forecast to 1.3% From 0.6%

Germany's leading economic institutes raised their growth forecasts for Europe's largest economy on Monday, according to a Handelsblatt report citing unnamed sources. The five institutes — RWI in Essen, Ifo in Munich, IfW in Kiel, IWH in Halle and DIW in Berlin — now forecast 1.3% growth for 2026, up sharply from an earlier estimate of 0.6%, and 1.1% for 2027, up from 0.9%. Germany's sluggish economy has been a central issue in recent elections that produced major gains for parties on the far right and far left. The institutes did not immediately respond to a request for comment.