The federal government expects a 1 % economic growth for 2026, confirmed by Deputy Government Spokesperson Steffen Meyer on Wednesday after the cabinet session that adopted the annual economic report. The figure had already been leaked to various media beforehand.
Meyer said the outlook indicates progress, although large challenges remain. He highlighted that the recovery will be driven by stronger domestic dynamism combined with a modest easing of external pressures. The discussion around the economic report reportedly led to one of the longest cabinet meetings in the current parliamentary term, though the specifics of the debate were left unclear. Nevertheless, the aim is to restore Germany’s competitiveness.
Economy Minister Katherina Reiche (CDU) will officially present the annual economic report in the afternoon.
