Ifo Institute on Sept 20 raised its 2026 GDP forecast for Germany to 1.2% from
0.4%, citing stronger-than-expected H1 growth. It warned growth momentum will
slow again in H2 2026 as temporary export incentives expire, elevated energy
prices suppress private consumption, and construction-sector weakness linked to
public investment persists. If 2027 growth slightly below 1%, expects 2026
inflation a touch above 2.5% and consumption growth of about 0.3%. It flagged
downside risks from the Russia-Ukraine war, Middle East tensions, international
trade disputes and low water levels on major European rivers.