Bundesbank chief says Germany could grow by about 1% in 2026

Germany’s economy could grow by around 1% in real terms in 2026, Bundesbank president Joachim Nagel said in a speech in Rostock. That would be a modest improvement after three years of stagnation. [1]

Nagel said the economy had performed considerably better in the first half of the year than expected several months earlier. He said a recovery had begun despite pressure from tariffs and the conflict in the Middle East. [1]

His estimate is higher than the Bundesbank’s earlier forecast of 0.5% growth, but lower than the 1.3% forecast issued the previous week by five German economic research institutes. The institutes had expected 0.6% growth in the spring. [1]