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

By Klaus Lauer

BERLIN, ‌Sept 22 (Reuters) - ​Germany's ​leading economic institutes have raised their forecasts for economic growth in Europe's largest ‌economy for this year and next but ⁠expect only meagre growth in 2028, sources told Reuters ‌on Tuesday.

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 projection of ⁠0.9%, according to the sources.

Handelsblatt first reported on the forecasts for ​2026 and 2027 on Monday.

The institutes expect growth of only 0.4% in 2028, sources ​told Reuters.

The forecasts will ‌be officially presented on Thursday, under the title "An economic upturn marred by structural ⁠problems – fiscal policy on the wrong track," sources said.

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 - RWI ‌in Essen, the Ifo institute in Munich, IfW in Kiel, IWH in Halle ‌and DIW in Berlin.

Several economic institutes had recently ⁠raised their forecasts, following ‌a stronger-than-expected first ​half of the year.

(Reporting by Klaus Lauer, writing by Maria MartinezEditing by Ludwig ‌Burger)

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