The German central bank says the German economy will "significantly strengthen" from the second quarter of 2026.

The German central bank has indicated that the country's economy will gradually recover next year and accelerate growth in 2027, driven by increased public spending on defense and infrastructure. In its new forecast released on Friday, the central bank stated that gross domestic product (GDP) will grow by 0.6% in 2026, 1.3% in 2027, and 1.1% in 2028. Compared to the forecast in June, there is a slight downward adjustment for next year's forecast and a slight upward adjustment for 2027. Joachim Nagel, the President of the German central bank, stated in a release that "economic growth will significantly strengthen from the second quarter of 2026, with the main drivers being government spending and export recovery."