Article

The German government has lowered its 2026 GDP growth forecast to 1%, down from the previous estimate of 1.3%, reflecting a slower-than-expected economic recovery. Challenges such as high energy costs, weak global demand, and competition from China persist, prompting the administration to implement structural reforms and a significant infrastructure fund. The revised outlook for 2027 has also been adjusted to 1.3% from 1.4%, with two-thirds of the anticipated growth in 2026 reliant on government fiscal stimulus.