UBS: Germany's economic growth is expected to rebound in early 2026.

UBS economists said in a report that Germany's economic growth rate in the fourth quarter of last year was 0.2%, slightly better than market expectations, mainly due to a significant recovery in industrial production. This means there is a slight upward risk to the GDP growth forecast for the full year of 2026. Economists expect economic growth in the first quarter of this year to rise to 0.3%, benefiting from the gradual fading of tariff headwinds and the increasing fiscal stimulus measures by Germany. They noted that initial signs of increased government spending have begun to show, including an expansion of the budget deficit and a rise in factory orders for defense-related products. UBS predicts that Germany's GDP growth rates in 2026 and 2027 will be 1.1% and 1.7% respectively, meaning that Germany is expected to become the growth leader in the Eurozone in 2027.