Growth forecast for the German economy revised upwards

Germany’s government-backed Council of Economic Experts raised its 2026 growth forecast for Europe’s largest economy to 1.3% from 0.5%, citing stronger export performance and a faster-than-expected recovery from energy shocks. The upgrade matters because it signals a more robust German recovery outlook, which could support broader euro-area momentum. The council also warned that public debt could climb to 98% of GDP by 2040, keeping fiscal consolidation in focus. Watch next for whether the government adopts the revised forecast in its own projections and how debt-sustainability concerns shape budget planning.