Germany raises 2026-27 GDP forecasts, sees war impact contained

Germany's Economy Ministry upgraded its 2026 GDP growth forecast to 1.3% from 0.5% and 2027 to 1.1% from 0.9%, citing a smaller-than-feared impact from the war in Iran. The revision aligns with major research institutes and signals a more resilient German economy, though 2028 growth is projected at a modest 0.6%. The upgrade suggests reduced downside risk to the euro area's largest economy, but uncertainty remains over the war's trajectory.