German govt raises 2026 growth forecast to 1.3%; business costs remain key concern

The German Federal Government revised its 2026 GDP growth forecast upward to 1.3%, signaling the trough of the economic slowdown has passed. However, CDU Mittelstand head Gitta Connemann cautions that relief is insufficient without reducing business costs, highlighting ongoing structural concerns. The forecast revision suggests a modest recovery, but political pressure for cost relief persists.