'German economy will not take off in 2026,' says chamber of commerce

""The German economy will not take off in 2026," the DIHK stated in a press release, citing a survey it conducted earlier this year of 26,000 German companies across all sectors. According to the survey, only a quarter of the companies surveyed assessed their overall business situation as good, while another quarter considered it poor. "Despite the reforms announced by the federal government, the outlook is only slightly more optimistic than it was in the autumn," the DIHK noted, with one in four companies surveyed anticipating a deterioration in the economic situation."

"Germany, Europe's largest economy, returned to weak growth in 2025 after two years of recession. Based on its survey, DIHK forecasts "weak growth of 1 percent in 2026," according to the group's director. At the end of January, the German government also revised its growth forecast for the current year downward to 1 percent, instead of the 1.3 percent announced in the autumn. German investor confidence has also dipped, according to a new survey from the ZEW economic research institute released on Tuesday."

"ZEW's regular indicator, which measures investor expectations for the German economy, dropped to 58.3 points in February, down 1.3 points month-on-month -- disappointing analysts, who largely expected an improvement. "Structural challenges, particularly in industry and private investment, remain considerable," ZEW President Achium Wambach said in a statement. A government spending blitz on infrastructure and defence has been slow to stimulate Germany's economy, which has been hammered by a manufacturing slump, high energy costs and weak demand in k"

Geopolitical uncertainty, high costs and weak domestic demand are expected to prevent a rebound in Germany's economy in 2026. A DIHK survey of 26,000 companies found only one quarter view their business situation as good while another quarter view it as poor, and one in four anticipate deterioration. DIHK forecasts weak growth of 1 percent in 2026, matching the government's revised growth forecast. Investor expectations fell, with the ZEW indicator dropping to 58.3 points in February. Structural challenges in industry and private investment persist. Government spending has had limited effect amid a manufacturing slump and high energy costs.

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