"Germany's economy is expected to grow more strongly this year than previously anticipated, according to new figures released by the International Monetary Fund (IMF). Growth in 2026 is projected to reach 1.1%, 0.2 percentage points higher than forecast in October, the Washington-based IMF announced on Monday. Among other factors, billions in German government spending are expected to provide a short-term boost, mitigating the impact of tariffs imposed by the United States."
"The IMF predictions are significantly more optimistic than Germany's own Bundesbank and the Munich-based Institute for Economic Research (IFO), but remain more cautious than the German government, which is expecting growth of 1.3%. The Berlin government's forecast relies primarily on domestic demand, with stable prices, wage increases and tax relief measures expected to boost disposable household income."
"To put the IMF forecast into context, Germany is expected to grow more strongly this year than other G7 countries such as France at 1% predicted growth and Japan and Italy at 0.7%."
The IMF projects Germany's economy to expand by 1.1% in 2026, an upward revision of 0.2 percentage points from October. Significant government spending is expected to provide a short-term boost and help offset U.S. tariffs. The IMF outlook is more optimistic than the Bundesbank and IFO but remains below the German government's 1.3% forecast. The Berlin forecast depends on domestic demand, stable prices, wage growth and tax relief to raise disposable household income. Germany's projected growth would outpace several G7 peers, including France, Japan and Italy.
Read at www.dw.com
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