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Joachim Nagel says Germany’s economy could grow by about 1% this year, above an earlier Bundesbank forecast but below a newer estimate from research institutes.
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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]
Nagel described growth of around 1% as a small but important signal after three years of stagnation. The figures are forecasts for 2026, not a full-year result. [1]
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