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

2026-09-20

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.