Germany’s economy will only slowly emerge from a multiyear recession, the Bundesbank has warned in a forecast that dashes hopes of a quick recovery driven by Berlin’s debt-funded spending spree.
The central bank on Friday lowered its 2026 growth forecast by 0.1 percentage points to 0.6 per cent. While it raised its 2027 prediction by the same amount to 1.3 per cent, it warned that the risks to its updated GDP forecast “are tilted more to the downside”.
The new outlook suggests that Germany’s GDP will only rise back to its pre-recession levels by late 2026.
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