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German Economic Institute triples its 2026 growth forecast to nearly 1.2%
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IW raises forecast after stronger first-half exports and government spending
Germany’s IW economic institute raised its 2026 growth forecast from 0.4% in May to nearly 1.2%, citing stronger first-half exports and government spending. Other German institutes have also recently increased their forecasts after better-than-expected first-half performance. IW expects momentum to weaken during the second half as high energy prices, limited private investment and job losses constrain demand. It forecasts growth of nearly 1% in 2027.