German chamber of commerce raises 2026 growth outlook to 1%

The German Chamber ​of Commerce and Industry on ​Thursday raised its ‌2026 growth ​outlook for Europe's largest economy to 1% from 0.3% but warned that the expansion ‌is largely being driven by debt-financed public spending. "The government is spending money on infrastructure and defence, and exports are providing some ‌tailwind. We are still a long way from self-sustaining growth," ‌said the chief executive of the lobby group, Helena Melnikov, in a statement.

In its poll of 23,000 German businesses, 26% of respondents rated their ⁠current ​business situation ⁠as good, up three points from early summer, while 23% of companies rated ⁠it as poor. Analysts broadly agree that Germany is emerging from ​a prolonged slowdown, but many stop short of calling the ⁠recovery self-sustaining because private investment remains weak.

The German government expects the economy ⁠to ​grow by 1.3% in 2026 and 1.1% in 2027, while the chamber of commerce sees 2027 growth at 1%. Despite ⁠higher prices due to the Iran conflict and uncertainty caused by ⁠US tariffs, ⁠the German economy has shown resilience and grew by 0.2% in the third quarter.