🔶 Germany's surprising economy; The growth forecast is threefold

🔶 Germany's surprising economy; The growth forecast is threefold

The unexpected and strong performance of the German economy in the first half of the year and the special infrastructure financing fund from loans contributed to the economic prosperity of this country. Economists have tripled the economic growth forecast in Germany.

The German Institute of Economics (IW) tripled the country's economic growth forecast this year (2026).

According to the forecast of this institute located in Cologne, now instead of a growth of 0.4%, a growth of 1.2% is expected. The main reason for this review is the unexpected and positive performance of the economy in the first half of the year.

Also, for the first time, the special fund for financing infrastructure renovation from loans is available throughout the year.

At the same time, the report states: "In the second half of 2026, the rate of growth will slow down again." According to this report, the lateral effects of increased exports are fading and private sector consumption is also affected by high energy prices. The crisis in the construction industry will continue and government investments will be its most important driver.