The German central bank forecasts that the German economy will grow by 0.7% in 2026 (compared to 0.8% in the December forecasts) and 1.2% in 2027 (compared to 0.9% in the December forecasts).
In this manner, the Bundesbank is revising its growth forecasts for Germany downward for this year and the next and upward for 2027.
In December, the institution projected the German economy would grow by 0.2% in 2025.
The Bundesbank believes that the trade war will have a mitigating effect on growth, similar to the boost provided by Germany’s increased spending on defense and infrastructure.
According to the German central bank, Germany will register inflation of 2.2% in 2025 (compared to 2.4% in the December forecasts), 1.5% in 2026 (compared to 2.1%), and 1.9% in 2027 (unchanged from previous forecasts).
