German institutes raise 2026 and 2027 economic growth forecasts, sources say

Germany's leading ​economic institutes have raised ‌their forecasts ​for economic growth in Europe's largest economy for this ‌year and next, sources told Reuters on Monday.

The German economy is forecast to grow 1.3% ‌in 2026, compared with an earlier forecast of ‌0.6%, the sources said. For 2027, the institutes forecast growth of 1.1%, up from an earlier forecast ⁠of ​0.9%, according ⁠to the sources.

Handelsblatt first reported on the forecasts ⁠on Monday. Germany's sluggish economy has been a big ​issue in the country's recent regional elections that ⁠have resulted in big gains for the far ⁠right ​and far left.

The forecasts are a joint effort by five prominent economic institutes - ⁠WI in Essen, the Ifo institute in Munich, ⁠IfW ⁠in Kiel, IWH in Halle and DIW in Berlin.