Germany’s economy is set for a gradual recovery, with GDP growth of about 0.6-0.7 per cent next year, rising to 1.3 per cent in 2027 before easing to 1.1 per cent in 2028, according to the Bundesbank.
Momentum is expected to strengthen from Q2 2026, driven by government spending, exports and rising wages, while inflation is forecast to ease only slowly amid strong wage growth.