Germany’s economy is expected to grow faster in the fourth quarter following a stronger recovery than previous forecasts had indicated. Bundesbank President Joachim Nagel said this, according to Reuters.
In June, the central bank forecast growth of 0.5 percent for the full year 2026, but several major forecasters now estimate that growth will be more than twice as high.
The recovery is being driven primarily by industry, particularly the chemicals and electronics sectors, as well as increased government investment in defense and infrastructure.
Nagel warned at the same time that the upturn is not yet broad-based. Household consumption is weak and investment in machinery has declined.
He called for structural reforms to strengthen the labor market and long-term growth.
